Monday, December 8, 2008

What a way to finsih the week ...

Previous Trade Day
Many of you know how extremely bullish I have been in the short term but even with that bullish feeling I would have never expected a day like Friday. Gap open down, hit the 820 yet again - and we had the buy volume as expected once we reached those levels. For this to run all the way to the upper range is quite impressive. I honestly would have expected the 820 not to hold this time. My call was that we need to get out of the lower range sooner rather then later - for that to occur on a friday and moving 60 point from the low is quite a big statement the market is making.

Well I am getting excited again today - I honestly feel we are setting up for the suckers rally I was referring to last week. I mean both fridays closing the highest point in the week. Again today we will see our change of trend to the downside - though do not think you going to get another day like last week Monday. We should be able to hold on to Fridays gains on the open (need to wait for premarket data as I am posting early every day due to my current location).

If we are to hold on to gains, get your money ready for a great short here - we could be seeing 900's today which gives you an amazing short down - my call would be 915-917 as the top for the day. This short should last all the way to 845 giving you probably 50 points. Watch as we increase in price with volume drying up - make sure to distinguish this from actual break of the 890-900 which could very well occur here. My call would be one more attempt at the 900 with a sell off for a final break towards Wednesday/Thursday.

EDIT: I had posted earlier we have to be mindful of this being a potential break of the 900 - my feel was one more test and a sell off before we break but this could be wrong today. We have a potential from here to top in the 945 range - so be careful on the short side today. I am still confident that the 917 is the top for the day and we will turn lower but again be careful when trading short today.

1 comment:

  1. Woohoo! I bought in to SDS at 916 S&P! :)