Wednesday, July 15, 2009


The last few "In The Huddle" columns have been dedicated to technical analysis and key support/resistance levels. I will continue to update them since they have been working and it is important to be aware of important resistance/support levels in a rangebound market.

Today's post will talk about the "structure" of the market and how we can interpret REALTIME what is appearing before our eyes' and how we can capitalize on the "blitzes" that the market is showing.
Today there were so many of them and I have listed them below. The timing of each one of these occured in the early morning, with some occuring before others'. Regardless, they occured at or before 10am. ALL OF THESE INDICATORS LED TO THE STRONG BELIEF THAT WE WOULD HAVE A TRENDING UP DAY.
1. Advance/Decline Ratio was 9 to 1 on the opening and didn't deviate from this level all morning long.
2. The S&P's hit the R3 (pivot point level) in the first 15 minutes of trading.
3. The NYSE Tick didn't dip down below zero in the first 30 minutes of trading. YES, PLEASE RE-READ THAT. That rarely if ever happens.
4. The NYSE 10 period Moving Average Tick stayed significantly above zero in first 30 minutes of trading.
5. The low/high for the day is usally in by 10am.
6. Small Caps (russell/nasdaq) were leading us higher off of the open.
7. XHB (housing) was the strongest sector early in the morning.
These indicators can help determine the internal structure of the market early on.
Did I miss anything? I want to hear from other traders'. What did you see?

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