Monday, August 24, 2009

Gap up, some one-off names had good trades, but overall, pretty slow

  • The “Trading RM" oscillator is still trying to break the downtrend line. It came right back to it on the close, after being well below most of the day. A big down move will likely see the oscillator stay above the downtrend line, which is a definite sign the market is loosening and might be time to get more aggressive.
  • “Future(s)” gapped up a small amount, followed by some continuation to the upside. Market made new rally highs on the S&P minis, only to sell off and find close from Fridays levels. Tomorrow will likely be mixed action given the slowness and light volume in the market.
  • “Range” was below the recent moving average at 14. Market had a slow grind up on decent, while the sell-off seemed to have more volume. The range oscillator suggests the downside may take a bit to come, a move back to the recent range is likely, but a possible push to upside is there.
  • “Going Big” was weighted slightly to the downside percentage when compared to upside. This suggests market is again mixed and uncertain. Possible continuation to the upside, but indecision seems to be the name of the game right now.
  • “Gap DaP” had continuation, and from recent history, the last time the oscillator registered these numbers, a gap down with continuation occurred. Granted small sample size, so be nimble.

Still August trading, which is usually slower.

Good luck and Great Trading.