Monday, April 20, 2009

Safety Valve?

As I mentioned in the previous post there was something unnatural in today’s selloff.


Just total absence of buyers, initial gap scared everyone, all technicals were at the critical resistance points, none wanted to step in and buy here - down the slippery slope market was going all the day long. Somehow today did change a lot, major indexes in one day on no volume made it to the manor support areas, most daily sell signals were recycled and, if market will start going up tomorrow after really small gap down of near flat open - I would be very tempted to say that today was a necessary “clearing action” and market will go higher reaching my original targets for /ES 885-914 by the time it is REALLY ready to sell. May be I am just biased - I ended today on 20% margin on the long side...


[annotated chart posted on Contributors Site. If you are interested in becoming contributor of Trading to Win - here is how.]