Wednesday, August 5, 2009

Good opening opportunities, followed by two-way action… market pushed higher late, but couldn’t bring it positive, might be a sign.

  • 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)” very mixed action. Market is relatively quiet and trying to decide direction.

  • “Range” was intra-day back at the recent moving average around 13. When including overnight futures it was bigger. Again market over 1000 level as it was yesterday. As such, market still seems like there is some confusion as to where it wants to go. Be nimble a big move may be in the works.

  • “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. Trading RM is definitely looking for more mixed to downside divergence tomorrow, a bit surprised it was quite so one-sided today.

  • “Gap DaP” has been spot on recently. Today’s gap down and then market lower was not a surprise. Again futures may be going tired of trying to tell the market where to go... Either a definite lay it all out there is coming or market will show traders who is boss.

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 two days to help write the book.

Today was good trading opportunities, looking for more tomorrow.

Good luck and Great Trading.