Tuesday, December 9, 2008

Where are the bears?

My initial call was a suckers rally that we did not get. We broke the 900 range and remained about the range all day. However, after our gap open we remained in a very tight trade range throughout the day on average volume - we did not get the momentum we needed to stay above the 900 range on the short term.

As you could see I was hesitant yesterday before the open anticipating that we may hold on to those gains but should still remain with the top of 917 - top of the day was 918.57. Any shorts here had a great entry for the next 2-3 days.

Well today we should be able to hold on above the 900 range in the morning hours. We could see a rally into the 929 with a potential of a 940 stall - if this is to occur we should see volume decreasing sustantially as we increase in price off the 917. Do not be afraid if you are holding short here, if you got some money left over average down as we will be heading lower.

I had called for a chance of trend to occur yesterday that did not happen, we topped out at the anticipated ranges but did not sell off from there. We will have one last push on the up run before we head back down.

How to trade today?
Well, I am a bit frustrated as we had 3 days of unclear trades (though I took friday off). Any shorts yesterday had a great entry at the 917 and will get another chance today potentially in the 930 range. Of course there is the potential to stall out at yesterdays top 918. Pretty much any short position at this point is going to get the gains they are looking for. We rallied 100 points in 2 trade days which is a bit too much again in such a short time frame.

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