The pits since yesterday are looking at this 1350 point SPM, I would think they will get this play, the rising skepticism is a good sign but at these levels all long trades needs to be very nimble, I would like to play with leverage, use money in them most effective lay out a little but with maximum potential of profit. If we open lower we could see even 1347 intraday if that point is holding or around that area we go higher, it is nice to wrok on 45 minutes thumb rule a level that holds for 45 minutes is a level of reversal in most of the intraday trading, I would think that overall the indexes have moved a little ahead like DOT they needed a little set back, getting out at 725 was great but in view of earnings i don't see any reason to suspect that this 'orgy of motivated excess' is going to end anywhere soon, one needs to be a part of it, with precision and lethal accuracy and maximum effort as not to loose the premiums, in intraday if 2504 is broken that will be first sign to go to 2300 on composite or retest of 1292, so we will have lot of room, but I will like to long at 1350 area with a 6 point stop loss, rather we were thinking to leave a buy order last night at 1350 and a sell at 1344, that we thought would be premature and now we are looking at composite and NDX with DOT, DOW is charging ahead although on back of oils, the real momentum is name of the game, them moment you see momentum stalling get out of this internet game, it is fun, it helps makes lot of money but just don't over commit, use 50% of profits at risk, get out at resistance like 725 and reenter at supports, never sell puts to buy any stocks at these heights, although a hedged long call against individual exposure may be just good enough, legging out of this is much easier..
This market can sell to supports like 2504 or 1328 but it has got a lot going for it so a trade in between interim levels is viable although long term shorts would be only valid if 1292 is taken out, that we have tested last week, and a bounce off that was simply great, a test of 1965 on NDX validated the 50 days MA line.. Like DOT 550 test validated the other index that really needed one, entry at 550 is one hell of a move but exit at 725 was equally important, take the profits off the table is the name of the game, market opens every day, the only way to make constant money is to plan them oves define a strategy and than play with outside the monies, in market making new highs one cannot ignore not to be a part but equally the levels of involvement has to substantially changed.. Low cash high leverage that is how this new highs are going to be scaled.. |
