Wednesday, June 16, 2010

Flat day

Today's action c an easily be called no action. FAS opened down50 cents at quickly rallied to 24.16 (I jotted this down) yesterday's high.  It then made the low for the day 23.44 at 7.35  and started moving up and finally reached the high of the day 24.44 at  11.05  $1 above the low and started coming down bottoming at 23.76 at 12.30 FAS finally closed at 24.04 a penny less than yesterday. The 24.16 was a tell.  Very rarely like never has FAS closed at the exact same high of the day two days in a row.  So when it came down it was a great buy at 23.44 for nice $1 profit.  SPX behaved similarly.  For 6 days in a row SPX has made HH and HL some time closing positive sometimes negative.  This is very bullish.  
The chart on the left is FAS 15 minutes.  It shows D2PL.  FAS has broken the 3 day D2PL and is back testing. Should it come back and make a LL that would be negative.  FAS did not go out of the envelopes to give a bearish signal.
The chart on the right is SPX hourly.  It is riding the middle line.
I don't like it when issues start riding the middle line.  They should either pierce to the upside or down side to continue a trend.  This to me is not bullish.  It could go up and hit the top of the channel then it would be bearish.  Tomorrow is the day before OPEX I expect good action for Fri will be another flat day.  I am looking for a chance to play both long and short tomorrow (not at the same time).  You can follow me on twitter under  Dino_007

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