Tuesday, January 20, 2009

Turn around?

Short Post Today sorry guys ....

Previous Trade Day
As mentioned I expected a retracement however more along the lines of 50% or even 32% - retracing back this much is a fairly bearish sign - yes we did make up a lot in the afternoon but we should not have traded back into this range after having hit the 820 range.

The one thing I am glad at is our ranges. The past 2-3 weeks have been difficult to trade unless you were totally short or totally long. With ranges back we can easily justify entering short term positions for a 10 point gain.

Today
Well we have Obama in office, we had a day off and closed in a fairly decent range - in my post on thursday I had mentioned that the top could be around the 880-885 range. The trade day on Friday confirmed this assumption as we needed a follow through day that we did not get.

How to trade this?
We actually have a great short term trade ahead of us right around our upper range from Thursday/Friday. Watch volume as we re-attempt the top of Friday and either go long or short. This will give you a great protection and some nice gains of at least 10 points.

No comments:

Post a Comment