I think the market has ample opportunity to build on the gains made from the overnight lows. The fact that it hasn't tells me we need to trade lower before heading higher. Would not be surprised to see us trade below 852 before we attempt to rally.
There are 3 opening gaps nearby to the upside that could very well be attractive to the ES Dec contract: 10/24/08 opening gap up to 915ish; 10/22 opening gap up over 950; 10/15 opening gap up to 1005ish.
Then, above that, there's the 10/6 opening gap, up and over 1100, topping near 1109.
Finally, there's the 10/2 opening gap, the top of which is near 1167.
Wow...then I see another one from 9/29 up to 1215.
That's a total of 6!!!! Normally you get 1)breakdown gap, 2) continuation gap, 3)exhaustion gap...then, maybe 4)squeezing blood from a stone.
But 6 freakin' gaps?! This is completely outta hand, and those babies are way overdue to start filling.
I wouldn't be surprised to see equities fall into negative territory ahead of the the final hour of NYSE trade in an attempt to trigger margin related selling. If we hold in the green then look for a test of earlier highs.
I think the market has ample opportunity to build on the gains made from the overnight lows. The fact that it hasn't tells me we need to trade lower before heading higher. Would not be surprised to see us trade below 852 before we attempt to rally.
ReplyDeleteEDS
Just sold a small short at 878.
ReplyDeleteEDS
Covered for small loss at 879. Looks like we are caught in a wide 855-893 range
ReplyDeleteEDS
Hi Carl,
ReplyDeleteGreat call this morning, but what do you think of the volume, is is not on the light side? How do you read this with respect to the big rally?
Greg
There are 3 opening gaps nearby to the upside that could very well be attractive to the ES Dec contract:
ReplyDelete10/24/08 opening gap up to 915ish; 10/22 opening gap up over 950; 10/15 opening gap up to 1005ish.
Then, above that, there's the 10/6 opening gap, up and over 1100, topping near 1109.
Finally, there's the 10/2 opening gap, the top of which is near 1167.
Wow...then I see another one from 9/29 up to 1215.
That's a total of 6!!!!
Normally you get 1)breakdown gap, 2) continuation gap, 3)exhaustion gap...then, maybe 4)squeezing blood from a stone.
But 6 freakin' gaps?! This is completely outta hand, and those babies are way overdue to start filling.
My $0.02
I wouldn't be surprised to see equities fall into negative territory ahead of the the final hour of NYSE trade in an attempt to trigger margin related selling. If we hold in the green then look for a test of earlier highs.
ReplyDeleteIndices in -ve territory as we enter final hour. Lets see if selling begets more selling.
ReplyDeleteEDS