Wednesday, May 6, 2009
Learning To Fly
The market is sure learning to fly as of late and seems to not remember how to pullback. We flew right thru 900 recently and today hit nearly 920 on the ES. I have been looking for 930 or so in the SPX since about late March and we are just about there. I would not be piling into longs up here after such a run but at the same time I wouldn't short this with my enemy's money. I would rather wait to see a breakdown on the 60min chart to start shorting but for now why not just scalp the long side some more? The momoentum is definitely there.
For Thursday the pivot is at 899.25 and price is well above that right now so I would think that the 900 area would hold as nice support intraday and if we were to trade down into the low 900s it would offer a nice buying opportunity in the ES futures. We shall see what happens but I would stay long-biased and just not be surprised to see a fading of this rally sometime soon. But wait for the market to tell you it wants to fade before you convince yourself of it.