Tuesday, December 8, 2009

Previous Analysis Worked as Expected

Another winning swing trade. The technical analysis done last Friday worked and the Bearish scenario became real.
SHORT from 1110 ESZ9 nad 1105 ESH10 ( New Contract ). Now looking for an exit target. Even gave two intraday setups that worked like a champ during the day session in the $ES_F StockTwits but no one paid attention to it.Two winning trade setups for free !
Today's volume production on the S&P 500 was 3,921 million shares, which is roughly in-line with index's average daily volume output over the past three months.
The market was weak today, with the S&P 500 sliding toward the bottom of its recent, multi-week trading range. The NASDAQ 100 index closed down 0.61%, the S&P 500 dropped 1.03%, and the Dow was off 1.01%. For the week, the NASDAQ 100 is now showing a loss of 1.07%, the S&P 500 has relinquished 1.26%, and the Dow is in the red by 0.99%.
In a speech at the think tank Brookings Institution, President Barack Obama today outlined new government efforts to create more jobs. It is the President's belief that the US must continue to 'spend our way out of this recession'. While the effort does not officially carry that title, critics maintain that this is exactly what it is - a second stimulus package. According to the President the package includes new spending for infrastructure programs, additional small business tax breaks, as well as energy efficiency tax incentives, and more.
Obama started his speech by outlining the previous efforts of his Administration ('We avoided the depression many feared'), but he avoided too much self-congratulation, suggesting that 'Our work is far from done.' The speech also included some sharp criticism of the Republican Party:
The President suggested that almost immediately after taking office, his Administration was tasked with taking 'a series of difficult steps' to keep the economy out of an outright depression. 'And we were forced to take those steps largely without the help of an opposition party which, unfortunately, after having presided over the decision-making that led to the crisis, decided to hand it to others to solve', Obama said.
A rising US dollar, a disappointing earnings forecast from Dow component 3M, and a disappointing McDonald's sales report all conspired today to push the major indexes lower. Rising debt levels in Greece and in Dubai, as well as reports of slumping manufacturing in Britain and in Germany, also served to push both the US dollar and Treasury prices higher. The rising US dollar in turn pressured commodity-related stocks. Crude oil prices slipped for a fifth consecutive session and gold prices lost ground for a third day in a row.
Furthermore, market analysts say we are currently seeing little buying pressure from many fund managers. They are getting defensive and in many cases merely trying to preserve their gains as we are heading into year end.

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