Friday, October 14, 2011

Game Time

Very bullish close for the market as it easily closed over 122 resistance on the $SPY.   Next up is 123.5 which also coincides with 100SMA, daily resistance and as a bonus, $TLT will likely hit support at same time.  Game time!

Thus far from the October 04 bottom there have been two good day-trade short opportunities; the first was the jobs data pop last Friday, and the second was Wednesday’s 122 reversal.    Will the third be 123.5?     We’ll definitely try it short  (we usually wait for 10 -20 cent reversal before we enter and then  stop on high — and it often takes 2-3 tries to get it right but we always have stop on high –no hero trading).
As for longs we’ll be focusing in the basic material sectors for new opportunities even though the close of the $OIH extended into 50SMA makes us think we’re not going to find too many good set-ups without some further basing.   Melt-up market indeed.
Have a good weekend everyone.