Friday, November 20, 2009

Balancing Act

Here we are at another OPEX Friday, and so far it's been slow but steady, with no major economic news announcements, unless you count FDIC Friday after the bell, and that won't be moving this tape either way. But we remain alert, because there are some interesting areas of support in play, not only on the index charts, but the leaders as well. As noted by DDT last evening, even if you only trade one thing, keep a close eye on the others for further clues. So far we've had the RUT and COMPQ leading us down, but that could flip at any given moment. It didn't hurt the shorts to have the entire hard drive sector downgraded yesterday... My own "guess" is we're a wee bit oversold here, but that might not define the rest of the day's price action, so I'm using extreme caution to pick my poison, and I hope you all do too. Oversold/overbought has meant squat for the last several months. As I mentioned in chat earlier, Centrifugal wrote an excellent piece last evening on following your own analysis and doing your own heavy lifting basically, and truer words were never written. The benefit of this particular blog, IMO is that we share our vision and TA outlooks, but stay true to our own trading styles... as it should be. The added benefit is having other sets of eyes to point out hazards and learning and collaborating with each other, but that's not the same as blindly following someone else into a trade, regardless of the outcome.

I'm trading my own accounts like a bee in a hive today, so I'm sharing charts from Alpha and Zig Zag, with basically the same idea in mind. The regular game for the last several months also includes moving up and around those EMAs as far as I can see, with a lot of push/pull nearby. Monday's economic news is Existing Home Sales at 10:00 AM EST and a treasury auction.

Good trading going into the afternoon session!
A little something different that was shared with me by Shadow Trader for your listening pleasure below. Enjoy!

Alpha's EW

Zig Zag's SPX

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