Wednesday, December 3, 2008

There he is ...

Well does not get much better then this. We had moved up our change of trend as anticipated - opened above 820, small pull back to 820 and go long and we closed above the 845 on impressive volume - we had more volume yesterday then we did on our HUGE down day monday - thats what I was referring to yesterday with Monday having happened on low volume as a good reversal sign for the bulls.

After I entered my long position I closed out at the first 845 and went short as I was expecting a pullback after we reached it the first time, this again was a very safe short as a reattempt was incoming so no risk being down on a position and you decide whenever it is you want to close out - anything above 10+ points. I was very surprised seeing this run back down into the 820's - something I would not have expected but it recovered nicely.

Well this looks awefully familiar to last week. We are setup a little better today to continue with another up day though I would not think it will be a strong move today. We have tested the 845 twice now and closed just slightly above it - this price point will be important again today.

How to trade this?
My expectations are we won't see the 820's again today though we have a long chance at the 830 range. Other then that we have a short opportunity, however its almost 20 points away, if we do get to 865 here we can safely enter a short depending on momentum that got us there. That short is only a short term short for 15 points max - small returns but very little risk.

No comments:

Post a Comment