Wednesday, January 21, 2009

Just Another 4% Day

Wow! The only thing that sucks worse than not being long during a rally like we saw today--is being short lol. And honestly after we struggled to overtake the pivot midday multiple times I began to start getting bearish. But the market sure showed you why to never predict a move during lunchtime for the east coast. After the 2pm et time they just started buying this market to the moon. We blew through a few decent sized ambush shorts that I thought would at least slow down the rally. It was only a part of a series of smaller ambush long trades into the close. Just unreal how many 50% retracements in the last two hours were bought.

I think this market really blasted off after news came out about BAC and JPM ceo's buying a ton of common stock. Pretty good way to inspire temporary confidence, we'll see if it lasts. After the bell, AAPL blew out their earnings estimates and will gap up nicely in the morning. That will almost surely boost the QQQQ and the Nazz. Don't forget we have some econ data in the morning that could effect how we open.

For Thursday, the pivot is at 825.25. My bias will be to the bullish side as long as we stay above this pivot point. Also there is a possible ambush long trade at 823.25. That trade has a target of 845.75. There is also a much larger ambush short zone at 855. We could very well fill the gap at 866 from last week if we get any steam behind this rally.

If we fail to hold above the pivot tomorrow it could get ugly into the weekend, again. But as we are trading 840 right now I think that pivot has a good shot of supporting us Thursday and extending the market higher. Trade safe.

No comments: