Friday, July 31, 2009

Slower day, a bit of consolidation, some news, and two-way action… market broke the range yesterday, but was unable to make new highs or return to the range today.

  • The “Trading RM" oscillator is trying to pop, but meeting resistance on a downtrend line… It is trying hard, but still riding the line. As Trading RM has said before, when it pops thru the trend, be ready to get aggressive, until then be patient.
  • “Future(s)” have taken a breather today, after a recent pop-up, however, good two way action and some news plays worked on this summer Friday.
  • “Range” was in-line with the recent average.  Market uncoiled yesterday, and today it tried to find its way but was mixed by days end. The lower high of 990.50 in the ES Minis might become a resistance point Monday, IF the markets try it again.
  • “Going Big” was approximately a 2:1 ratio of percentages gained on the upside compared to percentages to the downside all day. When this has happened on recent Fridays, the next trading day was more heavily weighted to the downside, but again this is using history to predict the future.
  • “Gap DaP” was flat today since there really wasn't a gap on the open. However, futures were up early this morning, then down into the open. When the market opened, the market failed to make new highs compared yesterday, much less test 1000 in S&P futures. The futures could try for higher again, but the oscillator is light, thus a move lower is entirely possible.

While today was a bit slower trading, opportunities were there.

Good luck and Great Trading.

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