Thursday, February 26, 2009

Out of the Box

As you can see the e-minis have broken down out of the last day's trading range (blue rectangle). Volume on the breakdown (red line) was the highest of the day, but still not very great in the context of volume during the past 10 days or so. Nonetheless, I think the market is telling us that it will move lower before it can move higher. My best guess is that the 730 level is the next stop.

In the meantime the purple dotted line at 764 is midpoint resistance. Any strength above that level on good volume would put me back on the bull side of the ledger.
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5 comments:

  1. Anonymous2/26/2009 04:36:00 PM

    Carl,
    I have observed the same skill among every "profitable" trader as I do with you: observe, wait and make a plan before entering a market... Thank you for the day! Val

    ReplyDelete
  2. Anonymous2/26/2009 04:59:00 PM

    Hi carl
    here is a picture of where i stand
    into this next cycle low .
    im looking for a bottom yet we are
    now entering the end of the 2 year cycle and it relates to both the 1987 and 1929 crash so it is a time to be careful still if your bullish
    charts are here
    http://www.tradersaffiliates.com/WEEKLY%20UPDATE.htm

    hope you find it insightfull
    joe

    ReplyDelete
  3. Anonymous2/26/2009 07:03:00 PM

    No one wanted to be too long going into the GDP's in the morning ... we'll see a 740-ish handle tomorrow and rally to close in the green ... best guess for close is high 750's to low 760's

    Rick B.

    ReplyDelete
  4. PM2/27/2009 08:36:00 AM

    Hi Carl,

    Now long another at 732.00.

    Thanks.

    Kindest regards,

    PM

    ReplyDelete
  5. Anonymous2/27/2009 08:57:00 AM

    730 will be tested right at the open. Are we going to hold? Opinions?

    ReplyDelete