Wednesday, November 18, 2009

Grin and Bear It

Do you feel like you're on the outside looking in? Well, Wednesday started out well for the bears, but hopes were quickly dashed with strength in both the energy sector as well as the XLF so far. UUP has been hanging around the same place most of the session so far, so nothing to write home about there either. The PPI report was "hot," and housing starts missed the mark, but nothing seems to phase this tape. We are now five trading sessions away from the Thanksgiving break, and volume could be very light next week, and most likely next Friday we'll see more light volume although the market will be open. As discussed between us here many times, light volume has been bullish for this tape, so we'll keep that in mind as well as the need for a positive tape going into Black Friday shopping next week. We could all get surprised, but it's something to keep in mind going forward. So with that, a few charts to share, including XLF, XLB, QQQQ and a chart done by Zig Zag that includes a pattern Fujisan mentioned last week for a potential butterfly on IWM as well as Zig Zag's T theory estimations. Tomorrow's economic calendar includes: Jobless claims at 8:30, Leading Indicators and Philly Fed Survey at 10:00 and the Nat Gas report at 10:30. Good trading to us all into the afternoon session!




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