Monday, August 3, 2009

Great opening opportunities, followed by slowness, some news, and two-way action… market broke the range, but it may or may not last

  • The “Trading RM" oscillator is still on the downtrend line, meeting a lot of resistance, and until it pops, Trading RM believes being patient is appropriate. Aggressive plays will show their hand, but very selective and few.

  • “Future(s)” popped a bit today, but very slow action. First time we have had a bigger move into a major level and the market is relatively quiet.

  • “Range” was intra-day back at the recent moving average around 12. Including overnight futures it was bigger, but market didn’t roar into the 1000 level as might have been expected. As such, market still seems like there is some confusion as to where it wants to go.

  • “Going Big” was greater percentage to the upside when compared to percentage to the downside all day, approx 2:1. Market seems like it keeps pushing up regardless. Last two times we have had 2:1 ratio or more two days in a row, market had a stall with slightly more weight on the downside percentages.

  • “Gap DaP” provided a look today for the markets to try and push higher some continuation with futures morning pushing up. It happened, we continued to the upside after a gap up from yesterdays close. Given the lack of afternoon rally, Futures traders could try to push higher again, seeing as buying into the close.

While today wasn’t incredible trading, a couple opportunities were there.

Good luck and Great Trading.