Tuesday, February 01, 2005

TD or not to TD

After close analysis:

They say volume preceeds price. Yesterday's analysis pointed to a TD today and sure enough we got it going on some of the indices; SOX & SMH pointed to the right direction. Also the sloping base pattern on 'Range chart' came through and finally broke out - thing of a beauty! After some hesitation in morning the market took off. Got shaken out in morning and dumped couple of cars for a quick profit while held the 3rd a little longer (thank God!). Oh well, so some days go like this. Afternoon was ok with a reversal bar coinciding with 2bo for a quick scalp (long) since NQ didn't confirm. Watching how NQ behaves is key especially on bo setups. FOMC tomorrow!! And I'm expecting some chop.

Thought of the day: would like to start trading euro and 10yr Notes. Room can't get exchange fees right although we're a bunch of geeks (yawn!)

Market breadth was positive! One observation should be noted that add & addq opened lower than previous day and sure enough resistance point was the low of yesterday's bo range. VOLD was +ve all day but with less volume than previous day.

Futures were a mixed bag almost reverse of yesterday. AB and NQ didn't do much really. AB reallied early in morning then chopped rest of day for a good reason - NQ didn't confirm the upmove. ES sure was the star of the show and had a classic TD. All futs maintained their position >emas.

Indices standouts were SOX and SMH for sure. Both after gapping up on open retraced to yesterday's breakdown levels and then went up for rest of day. Dow hit 10550 area and will need to take that out decisively to move to the next critical area @ 10650. Market won't go anywhere until dow clears those 2 areas with conviction.

Overall positive day!

0 Comments:

Post a Comment

<< Home