Sunday, December 28, 2008

This Week's Trade 12/29

This week will be another slow week with low volume. With the Christmas and New Years falling on Thursday's this year that means weekends are being extending. The key word for the markets this week remains what it was last week. Boring. The daily ranges will be smaller than usual and honestly if you dont have to trade, then dont force it. But I'm sure there will be a few nice setups we can play for as we sit just above the critical 850 support level. To be exact we closed the week at 872 on the cash SPX.

As long as we stay above the 850 area we are looking bullish on the interemediate term. However we really need to get back over the 880 level for me to trade the market from the long side. After we broke 876-880 last week I focused more on the short side, as 880 is a very important level to hold. Until we get over it I would be a seller of rallies intraday.

Economic data is light this week as expected. Just Tuesday's Chicago PMI and Consumer Confidence, Wed's Jobless Claims, and Friday's ISM index.

Overall we are looking for some stale price action going into the last few days of 08 so dont be looking for much. But if the market fails at certain support/resistance levels then go ahead and scalp a few bucks and take those gains. Otherwise enjoy the quietest week of one loud year!

No comments: