Today’s Market Commentary Wednesday Janurary 28, 2009
Well not much has changed and today was a very choppy day. However we held the hourly 50sma’s on the indices as support and actually the futures are up on all the financial news. We have been consolidating since last Tuesday so maybe now today we are ready to break out. However the only thing missing the last three days is volume so I would like to see good volume today if we rally.
Interesting chats with traders today …about the Great British Pound ..the GBP moved 500 pips yesterday and another 400 pips today…I missed the entry early this am..it was running without me ..so I stalked it on the retrace I knew would come…yet everyone I chatted with was calling it short..near the bottom …I’m thinking go ahead chase it ..but is it a high probability entry ..not by my ey
Daytrend: An Introduction as a Trader and The V.I.C. List for January 21, 2009
No matter what we think is going to happen we have to be able to toss our egos aside and trade the tape. My signals last night changed on the gap down and once we broke the the 30min 50sma along with all the weakness in the financials I shorted the market and stayed short all day. Traders have to be able to adapt and take what the market is giving them.
The point I’m making is that as more traders become ‘technically savvy’, it is increasingly important to look for further evidence besides one recognizable pattern or a single time frame. United States Oil Fund(USO) had been in a death spiral for quite some time. Instead of waiting for a formidable base or pattern, buyers continually attempted to catch a bounce.
“Hi, Brasil!” “Any trades today?” This sentence makes me laugh the most. This comes across on the chat room window, and I know, usually 95% of the time, I’m dealing with someone who doesn’t understand trading. In only two words the writer indicates as much. So I’d respond,”Good morning, pipmaster!” Its usually a name like this or “bankin the pips”. You get the idea.
After a sharp decline this morning the market is struggling to regain it’s footing, but the most glaring standout is iShares Dow Jones US Real Estate Index Fund ETF (IYR). We know the dire fundamental view of Commercial Real Estate, and we feel a bit bludgeoned by the constant mentions of it’s collapse along with the repeated battle cries of traders. Long $SRS! Long $SRS!