Monday, July 27, 2009

IN THE HUDDLE


TECHNICALS:
The upside channel breakout of 956-958 (S&P) will be critical support on the downside. It acted as great resistance for multiple days on the upside and will act as support on the downside. The bears will not be happy with a mere violation of this level, the shorts need a close below this level to start picking away at the longs.
992 is an important pivot level for the S&P's. This will act as upside resistance. Of course 1000 is the big psychological number that the bulls' are so hoping for. One index that does not get enough publicity is the Russell 2000 index. Watch the russell this week to confirm the rally or selloffs.
Equities
Watch MA as it reports earnings on thursday. It has gone up 8 of 9 days since the channel breakout on July 15th. Correctly identified on July 13th post. http://tradingrm.blogspot.com/2009/07/blog-post.html
This looks to be a classic pump and dump. It will run up thru wednesday and then MA gets slammed after earnings. Look for that upside breakout as support on the way down.
WAT releases earnings tomorrow before opening. It usually picks a direction and trends that way entire day after earnings. Look for retracements on lower volume for entries.
*** Don't let a few good trades after earnings dictate where you think the market is going. Earnings plays can be a beast of their own and trade irregardless of underlying market.***

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