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Monday, May 3, 2010

Big inside day

Today was an excellent day to trade.  The market and FAS opened up as expected.  DMRM kicked in at 103.53 and gave ne a good place to get in on the long side at 103.31.  It drifted and reached a high of 106.6 and a sharp downside to 104.2 and closed at 105.8. I jumped out at 105.75.  The channel inside the envelope is proving out be a good way to look at FAS.  It hasn't crossed DOMA clearly to the upside not very positive and it did bounced of the middle line of the channel which is a positive.  If it doesn't clear the top of the channel that could be proof negative.  Tuesday are opposite of Mondays so that is also a negative for tomorrow.  FAS really did not rally as much as it should have compared to Dow and SPX and that is not positive.  I would give tomorrow a more than even chance for it to be a negative day.  The short point is at 103.20. 
The chart on the right is FAS on 60 min.  The two small trend lines are important.  If the lower  line is broken and I get a DMRM that would be a place I would short.   Today was an inside day.  Lower high and higher low.  Inside days are days of pause.  Lot happens on these days and pros take key positions. I am not bullish.

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