Saturday, October 23, 2010

Inside Day and NR9 on Low Volume-Friday

Monday, 10-25

SOLD 1188 ( Intraday ) posted on Twitter

Setup :
Failure to Penetrate Globex High 1193, making a Double Top
Dollar Index Recovery after new Low
VIX Count
First Target :
Tuesday, 10-26 - 07.47am est

filled at 1179.25 for + 8.75 Pts

Five Hours of sideways low volume 3.25 pts sideways range.This is got to be a record in the history of the Day Session E-Mini S&P 500 Futures contract

Short Swing position is on. No need to worry, got enough winners behind me.

Sunday 10-24 Update:
Swing position Stop Loss filled. Breakout Trade  (separate Day-Trading Account )
as described in Twitter was a winner for a combined Net Gain : + 9 Pts profits

Will get away from the markets this weekend.The ocean is calling for a weekend of Scuba Diving in the blue tropical oceans.

" And the seas will grant each man new hope "...

While listening to " You Only Live Twice " , longing for adventure...

Volume production on the major indexes was anemic today, particularly in the context of the recent heightened volume output. On the S&P 500, a mere 2.79 billion shares were traded.

US equity indexes traded on very low volume (a mere 770 million shares were traded on the NYSE, representing a one-month low) but on balance managed to drift higher, with the Nasdaq 100 up solidly and the S&P 500 up very modestly. Notably, intraday ranges were very narrow today (e.g., the S&P 500 traded within a 3-point range for several hours today), with market observers suggesting traders are waiting for a catalyst to drive the market either higher, or into a pullback. As noted above, the major indexes are now up on seven of the last eight weeks, and the broad market has risen some 11% over the past two months.

US market participants may be waiting to see what results emerge from a G-20 meeting of finance ministers and central banks to be held in Korea. Trade policy and currency manipulation will be key topics, for instance 'currency wars', where countries worldwide are currently attempting to depress their own currencies in an attempt to boost exports.

In key earnings releases, Baidu and Amazon both surged to record highs today following better-than-expected earnings. As well, American Express, Honeywell, Schlumberger, and Verizon also did well on the earnings scene. All in all, a third of S&P 500 companies have reported earnings thus far, and close to three quarters of these appear to have beaten analysts’ expectations.

 Looking at where the S&P is relative to its 55 DMA,  every time the market has gotten to above 5% its trailing average, it has always entered a period of consolidation ( at least modest selling). Furthermore, compared to the recent trend extreme of 7% above 55 DMA, the market moved meaningfully above one just one occasion in the past: in January 2009... just before the crash to the decade lows of 666 on the S&P occurred.

Notable Quotes :

The eye sees only what the mind is prepared to comprehend.

Henri Bergson
(French Philosopher, 1927 Nobel Prize in Literature, 1859-1941

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