Wednesday, October 21, 2009


The Wednesday noon hour finds the tape once again pressing the upper limits so far, and it was a beautiful big green candle right out of the gate that some of us couldn't resist making a contrarian trade against. Meanwhile, it's paying off handsomely to scalp at selected sector longs and stay hedged. So even if you're feeling bearish today, there's nothing wrong with being incognito and grabbing profits on the long side. Let's look at the intraday chart on SPY, with channel resistance in play as well as pivots galore.

I've read some discussion on shorting RTH on various blogs, but one of the most important things a trader needs to do is keep watch on the major components of the ETFs. In this case, the WMT chart, as it compromises 20% of RTH. It has broken out of a triangle in the last several sessions, so trading individual retailers may be more prudent choice, until WMT breaks down and/or the others break down in a big way.

Earnings this afternoon include AMGN, CTXS, COHU, EBAY, KNX, VMW. The list is very long for tomorrow's earnings, so briefly it includes some more major DOW components and briefly: MMM, T, DOW, BMY, BG, CIT, CNX, MCD MRK, POT.. and here is the rest of the lengthy list. Have a good trading afternoon and navigate well! ~Keirsten

Clever Osso even found music for the theme of the afternoon!
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