Thursday, June 17, 2010
Small range big day
Today's market not very active some time during day I almost fell asleep. There were moments of action like a dialogue ridden romantic comedy. FAS opened higher and within a minute established the high of the day at 24.35 from there are on it was down hill and finally made the low of the day at 23.2 at 12.18. It then staged a quick rally and closed at 23.9. It was a negative DKOD on FAS that is negative. FAS made a LH and a LL which is negative. SPX acted in a similar fashion. I have not done KOD analysis on SPX. I am starting one with today. The string of six HH and HL was broken today in SPX as it also did a LH and LL except SPX closed higher. It is typical for issues to rally almost all the way the to high of the but not make it in a KOD day. That I think is what happened in FAS and SPX today.
The chart on the left is FAS 3 days 5 mins. Lines 1;2;3 are upward sloping D2PL lines I look for these support lines to be penetrated to the down side to short. Occasionally they also act as resistance fans. They are not Fib. or Gann lines. Lines 4 and 5 are forming a nice channel. With DKOD (24/26 correct) turned on I would be watching to see if the blue line 4 holds as resistance.
The chart on the right is FAS for yesterday and today stacked one below the other. I was struck at the similarity of the move not necessarily the magnitude. bottoms were made around 7.30 am and 12.20 pm and top around 11.00 am on both days. I will follow these for a few days to see conitinuity.
With DKOD on I am bearish and look forward to adding to my shorts. Tomorrow is OPEx and anything can happen.