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Monday, June 7, 2010

Burn it after you read it

If you were at our chat room yesterday evening and looked at some the uber bearish sites suggested there and saw the futures tumble in after hours you would have thought the market was going to open down  250 points.  Nope it opened up and FAS opened at 21.65 and quickly reached a high of 21.78 and just as quickly came down to 21.01 and went back up to 21.95.  It then proceeded down to 20.86 and back up to 21.53 and finally started a tumble that took it to 20.15.  The reason I am detailing all these moves is because our DMRM in its old form would have given 5 wrong signals. I changed DMRM to be dynamic it now has a new set of parameters and an overlay  just to avoid these incidents.  I traded TNA from 40.5 to 41.86.
SPX IMO closed at low of the day that is positive.  We are 83 days into the low to low cylce that is positive.  The TRIN is so negative it is positive for the market.  Tomorrow is Tuesday that is generally opposite of Monday that is positive.  In opex the market (only 61% probability) tend to finish opposite of Mondays.  That is an overall mildly positive for the week.  The four charts are FAS/FAZ and TNA/TZA 5 minutes 10 days.  The DOMA 77 worked real well.  Any break will have to break DOMA first.  I have D2PL lines on FAS they will also have to be penetrated for bullish signal.  SPX is  very close within 9 points of the old low at 1040 that is negative.  FAS has run out of support lines to draw in my D2PL.  That is a negative or also called no man's land.  FAS made lLH and LL that is negative.  SPX has  also gone below the 2x3  Gann angle line that is negative primarily because the next support is on 1x1 line at around 970 and that is steep.
I will trade the long side again with half the normal amount till I rack up a few more wins.

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