Volatility returned to market. Today Nasdaq opened higher with 20 points gain, then sold off after the open, at one point, down more than 20 points, then slowly it climbed up, and 30 minutes before close, Dow was up 90 points, and Nasdaq was up 10 points. Last 30 minutes, All indices went down fast, Dow is the only one finished in green with 14 points gain, and Nasdaq down 6.
- Since the last hour was controlled by funds, I think the selling into strength is still the game in town.
- The market could not hold the modest gain after open, after Friday's 1.9% sold off in Nasdaq, telling me traders were nervous.
- The economic news are not as good as people hoped.
- From TA perspective, the test of August low looks more promising than ever.
- Let's see if bulls can keep this market from tanking before Sept.18th.
- I think we'll likely see a drifting lower before the Fed. But with this market, you never know.
- I need to take off some puts when market sell off again. Today I was about to sell, but the limit order was too high and it's not triggered.
- My target is 1430, then 1400, and then 1370. These are supports.
- On the upside, 1460, 1490 and 1510 are resistances. Today S&P again failed the 200 MA. It failed 50MA last week. The 400MA is 1380.
4 comments:
I think if you're going to do anything, I'd follow the big boys and sell into strength. I've got buys set for the QID at 42 and TWM at 66.50.
I've also got one long position buy for MON at 68.
David
David, you're very patient and cool trader. I'm in line with simpletrade points. Market has priced in .25 pts rate cut, but in fact, it may not happen. So, I didn't see upside until 9/18; however, there are lots of contrarians out there who are buying on bad news, then sell into strength. Bulls are still strong so trade cautiously and wisely.
Oh, I posted previous comment. Also, gold stocks and bonds seem to be strong during down market. It could be an indication of downtrend too.
ryan
Ryan and David,
You guys are patient! I wish I can learn from you guys: be patient and watch how the market does before taking actions, not to predict what's next for the market.
We have a patriotic rally underway now. Let's see how it closes and if we have strngth in this push higher.
Since August 16th, the market is range bound. Whenever it had a big rally, it pulled back; whenever if had a big sell off, it bounced back.
This pattern will be broken soon, to the down side most likely. But Fed can surprise us, so a strong rally can't be entirely ruled out.
Very tricky time.
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