The specialists are at his bests yesterday late afternoon.
Right from the start the market counter attack the loss from yesterday sell off. The shorts who shorted during the afternoon sell off got trapped or not.
It is past 10:00 AM and the market is hovering around yesterday high. Will it fill the morning gap?
Tuesday, February 9, 2010
Monday, February 8, 2010
February 8th, 2010
I am back in my office.
Where are we in the market?
This weekend finally I was able to analyze the market more closely for the past week.
On Thursday and Friday the market had panic selling. SPY broke down below 106 level, but it rebounded back above it and close above it. The market is at a major support. The bulls will give the bears a fight here.
I would expect SPY trade between 104.58 (Friday low) and 109 range this week. If SPY trades above 104.58 this week and it has 3 out 5 days are white bars, then you could expect the market will trade back up. There were lots of stop losses right below 106 level last Friday. The specialists triggered all those stop loses and that why SPY went down to 104.58. Then the specialists brought SPY back up.
For bulls perspective, the SPY needs to maintain above 106 level. Most individual stocks are at the major support level. SPY could retest 104.58 to 105 level again. As long as it doesn't make lower low (104.58) this week, the bulls will win the fight. Watch for clues on these stocks.
GOOG support level: 520
X support level: 42
AMZN support level: 115
USO support level: 35
For bears perspective, the market is still in downtrend in short term and the 13 day moving average is point downward. The volume is huge for down days than up days.
Two things to look very closely:
1. The VIX had trouble breaking out of 30 area. The 30 resistance level is the crucial point.
2. The market pattern this year could mimic the same pattern from last year of June and July.
Where are we in the market?
This weekend finally I was able to analyze the market more closely for the past week.
On Thursday and Friday the market had panic selling. SPY broke down below 106 level, but it rebounded back above it and close above it. The market is at a major support. The bulls will give the bears a fight here.
I would expect SPY trade between 104.58 (Friday low) and 109 range this week. If SPY trades above 104.58 this week and it has 3 out 5 days are white bars, then you could expect the market will trade back up. There were lots of stop losses right below 106 level last Friday. The specialists triggered all those stop loses and that why SPY went down to 104.58. Then the specialists brought SPY back up.
For bulls perspective, the SPY needs to maintain above 106 level. Most individual stocks are at the major support level. SPY could retest 104.58 to 105 level again. As long as it doesn't make lower low (104.58) this week, the bulls will win the fight. Watch for clues on these stocks.
GOOG support level: 520
X support level: 42
AMZN support level: 115
USO support level: 35
For bears perspective, the market is still in downtrend in short term and the 13 day moving average is point downward. The volume is huge for down days than up days.
Two things to look very closely:
1. The VIX had trouble breaking out of 30 area. The 30 resistance level is the crucial point.
2. The market pattern this year could mimic the same pattern from last year of June and July.
Friday, February 5, 2010
February 5th, 2010
GLD broke down below 105 to 106 area.
USO broke down below 35 to 36 area.
The U.S dollar currency continue to rise, but it is approaching overbought area.
The SPY closed the gap between 106 and 107 area from last year.
I will be back to my office next week.
USO broke down below 35 to 36 area.
The U.S dollar currency continue to rise, but it is approaching overbought area.
The SPY closed the gap between 106 and 107 area from last year.
I will be back to my office next week.
Thursday, February 4, 2010
February 4th, 2010
The GLD had breached below 105 to 106 level.
The U.S. dollar currency continues to rise higher.
The market is in the correction phase unless the market make a dramatic reverse back up this afternoon.
The U.S. dollar currency continues to rise higher.
The market is in the correction phase unless the market make a dramatic reverse back up this afternoon.
Wednesday, February 3, 2010
February 3rd, 2010
The market is in the middle of the road. It could go either way.
Watch GOOG closely. Today GOOG could possibly hit the bottom of a minor pullback.
USO bounced off from 35 and 36 area nicely.
The dollar currency is continuing to rise.
Watch GOOG closely. Today GOOG could possibly hit the bottom of a minor pullback.
USO bounced off from 35 and 36 area nicely.
The dollar currency is continuing to rise.
Tuesday, February 2, 2010
February 2nd, 2010
The only time I can post today was after hour.
The market bounced off from the strong support level at 106 to 107 for QQQQ. Also USO bounced off from 35 to 36 area. The last two trading days was very encouraging for the bulls. But is this rally for real or headfake? Also the spot gold bounced off from 105 to 106 area.
I wish that I can hold my GLD and SPXU for more gains. From what I learned from the past is that when I am on travel, I should never have any open positions. No loss and no pain, but no gain and no profit.
The market bounced off from the strong support level at 106 to 107 for QQQQ. Also USO bounced off from 35 to 36 area. The last two trading days was very encouraging for the bulls. But is this rally for real or headfake? Also the spot gold bounced off from 105 to 106 area.
I wish that I can hold my GLD and SPXU for more gains. From what I learned from the past is that when I am on travel, I should never have any open positions. No loss and no pain, but no gain and no profit.
Monday, February 1, 2010
Februray 1st, 2010
This week I will be on business travel. Fortunately, my departure time is this afternoon. So this morning that I am able to trade.
Is there a correction coming for the market? The way I am seeing right now, I am not sure. I am playing this by ear. There is a huge gap for SPY between 106 and 107. If the market bounces off this level very strongly, then the market is ready for the next leg. If it breaks below it, then the market is in the correction phase. Again, look for clues.
Watch for oil play, check out USO. If USO bounces off from 35 and 36 level, then it is very likely the SPY will bounces off from 106 to 107 level.
Is there a correction coming for the market? The way I am seeing right now, I am not sure. I am playing this by ear. There is a huge gap for SPY between 106 and 107. If the market bounces off this level very strongly, then the market is ready for the next leg. If it breaks below it, then the market is in the correction phase. Again, look for clues.
Watch for oil play, check out USO. If USO bounces off from 35 and 36 level, then it is very likely the SPY will bounces off from 106 to 107 level.
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