Tuesday, August 4, 2009

Good opening opportunities, followed by slowness and two-way action… market continued to the upside, market will tell us what will happen next

  • 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. When including overnight futures it was bigger, and market wasn’t as slow to get thru 1000 level as it was yesterday. 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 1.5:1. This is the first time we have seen this type of follow thru after a couple days in a row of heavy upside percentage. Market seems like it keeps pushing up regardless. Trading RM is definitely looking for mixed to downside divergence tomorrow.

  • “Gap DaP” has been spot on recently. Today’s gap down and then market push higher was not a surprise, but futures are telling a different story than the intraday trade seems to believe… Looking for more of the same tomorrow; futures are telling a different story than the intraday market is looking for. Time will tell who wins, but a lot of economic numbers in the next couple days to help write the book.

Today was good trading opportunities, looking for more tomorrow.

Good luck and Great Trading.