I keep repeating about importance of double close. I wrote yesterday that << I think we will see the market direction being determined by what happens today, if
we move stay above 1342 on SPm and DOT or NDX COMP climbs back above
638 2115 2520 resistance we may see that yesterday break was a false break, if
we make new lows on DOT and break 600 we have another 50 days test in offing,>>
The market tested as low as 580 on DOT, the break of 600 took the market to 580 and we rather saw the dip in COMP below 2454 the 50 days MA full 20 points below, we also saw SPM rebounding from that key support 1322..
This was a classic forecast on the type of markets we have buy the dips sell the tops, unlike 'gloom and doom' I insisted that the market needs to bebought emotionless at the dips..below 600 we tested and tested hard but the move up was equally great from AOL 112 support the last low we made a reversal a point higher from there, like wise EBAY 167 ATHM 136 or QCOM 203 area, all this reversal and we closed above 625 pointed the relevance of buying the dip and showing that the break of 625 was a false break, or even 2500 or 2100 or 1342 on all these indicators we had this succesful test ofl ows and we came aback up hard, the vlaues were created and those who went long as market revrsed must have done just great..
<< in such conditions
we will see buy at dips and sell at tops markets this is exactly what I am doing,
buying at dips or at supports and selling the tops... this market is a range driven
market and traders paradise, we need to look at opportunities as major supports
are taken out or major resitance is breacehd, if BKX break 902 I will not be
surprised to see that DOW may head lower and otehr cyclicals with it and internets
speculation may once again become the folklore story of every thread, however the
support of 600 is good and one expects that we may close above 625 today if we
break this 625 on two closing basis we may see much steeper correction to 2300
area in comp.. >>
If you ask me that if I am long at 595 break where to sell I would think give room to this move we will sell it at break of 620 and not before I would think that we will retest this 1360 and take it out this time to move up to 1378 area, on break of 650 we will see 675 on DOT as the first objective, the reversal and getting in to a trade is the bottom line.
The long term view of the market in a short term momentum based trading horizon will freeze any trader, the point is that a daily trader with a span of supports like 625 and 725 needs that nimbleness to get in and buy the dip at them most appropriate time, we kept today a 15 point trailing stop for getting in and were able to get in at 595-600 level on the rebound up I got mostly June's the list was as follows - QCOM around 203, CMGI at around 220, ATHM 135'ish, EBAY 170ish AMZN VRIO EGRP SCH, at theend of the day it all looked good I hope we can get thru this 650 and 675 hurdle on the way up, the only thing we get advantage over others is that by reminding that two day break has to be seen and by feeling that it may not be possible, we are not buying puts at the supports rather long calls, it is only at the dips like yesterday where money is made... |
