Wednesday, May 19, 2010
3 pennies for lethargy
With the way market closed yesterday and the follow up we got in the after hours with dow down close to 100 pts one would have thought it was going to open today down big. But it wasn't to be. This happens quite a bit. I am not going to pay attention to after market stats they seldom have any bearing on next day. Today the spx opened flat went down 5 points and quickly rallied and made the high of the day at 6.50 both on spx at 1124 and fas at 26.44. That was it The downturn started rather rapidly by 8.50 spx was at 1100 and FAS at 24.18 those were the lows of the day. SPX closed almost at open 1115 and FAS bit higher than open at 25.61. DKOD worked again and FAZ went from 14.44 to 15.77 or 9.2% . I went long early this morning. Didn't get out and was eventually stopped out for 3 pennies. Went in again on DMRM after 24.18 and made 50 cents. Shorted at 25.12 and had to cover end of day at 25.55. All in all not a good trading day on my part. The first chart on the left is FAS 30 min showing stranded Island. The mean between the top and bottom is at 31.11 and a 22% decline comes to 24.26 and today's low on FAS was 24.18 Good enough for me. 23.3 is still a possibility 78% of lower line at 29.88. The Gann chart shows an exact bounce of the 1x4 line at round number 1100. All round numbers are honored in Gann. On its way up SPX salutes the number and turn back down and on its way down kisses the number and turns back up. Once a hump is formed spx at the previous low will show a rally not to be confused with THE rally and come back down again and go right thru it like hot knife thru butter. Yellow FAS chart shows how each of the lows are are taken out. SPX will do the same. Markets character has changed. Instead of dip buyers we now have rally sellers. This is opex. There is a good chance we will get a flat soon. I will be looking for chances to short. .