Monday, July 27, 2009

More two-way action and some chop… but to be expected after the rally the market has had.

• The “Trading RM" oscillator is riding the downtrend, now trying to pop… when it pops thru the trend, be ready to get aggressive

• “Future(s)” have been slowing down, light volume, mixed both-way action (term used loosely), and now stalling here, be ready once it breaks to see more one-sided direction.

• “Range” went back to the recent tightness the market has been experiencing lately, S&P futures average around 15 handles the last 5 days, however, the action started to perk up again last week Thursday and it appears more is possible once we break the range.

As for a couple other oscillators:

• “Going Big” showed a 1:1 ratio for downside percentage when compared to the upside gainers… a couple days last week it was over 3:1 for the upside percentage gainers... this stall is normal, could mean toppy action, it appears pressure is growing to the downside.

• “Gap DaP” was again a bit mixed at futures tried to push the market lower, but like Friday nothing sustained. If a correction comes in futures, perhaps down 10 handles, watch for one-way action to the downside.

While today wasn’t incredible trading, opportunities were there.
Good luck and Great Trading.