Friday, December 5, 2008

Day off for me ...

Taking the day off due to some personal items.

Well, we were not able to get to the high I was referring to, we will have to wait for another day to get there. Additionally my recommendation was to stay on the sidelines or trade only on the edge. The lower edge of course was the mid 830 that we hit right before close - however, being so close to the end of day its not the best position to keep overnight. So anyone who stayed on the sidelines yesterday did the right thing.

Also interesting to see that our down day yesterday (one of the few) again occured on lighter volume which is a good sign for the bulls.

As we closed yet again at the 845 we are currently on the edge, we could see the 820's again, if that was to occur my current bullish feels will turn quite a bit more bearish. We need to get out of this range sooner rather than later. Expect buy volume to step in here and bring it back above the 845 - though with it being Friday I would expect a lighter day but most likly a close above the 845.

How to trade?
Well I am not trading today. It will be difficult today as we are back in the middle. Our trend has been higher lows the past few days so we could see the 835 again today, watch momentum there and volume to make sure we do not go back into the 820's. If we do break into 820 do not go long and remain on the sidelines as we could be setting up for a break to the downside there - again volume is important here.

On the other hand we have 865-875 on the upper range. Difficult to short that one down as the range has opened up a bit due to our recent close at the 870. I would wait for the 890 as I mentioned yesterday for the short with least risk and most gains.

All in all, last day of the week and no clear trades available. Staying on sidelines is the best thing to do today yet again.

Good luck to you all today.

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