| Feb 8, 2010 |
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Daily Insight - Feb 8, 2010 3:30pm As said on Friday, the scenario that if the indices "cannot garner sufficient strength" in Monday's first hour, then further weakness will continue to develop accordingly. Markets are still bearish and is seemingly biding time as they await once again for their declining midpoints to come down and help "push" prices lower. Conversely, an inability by the index to build upon Friday's late day reversal basically means that buyers are not convinced and lower prices are forthcoming. "Day Trader" lost $0.32 cents with MSFT and had no trades with AXP. For Tuesday, he will discuss after the close short sales on AXP and MMM. Swing Trading - Feb 8, 2010 3:30pm "Swing Trader" has no trades for the day. After 4:00pm - Feb 8, 2010 Broad market index SPX.X was basically weak throughout the trading day and seen below is how it is targeting the 1034.00 trendline as "first support" for the current decline. This area between 1019.89 and 1034.00 would be the strongest supporting zone as this is where the purple-colored 200-day moving average and the 1034.00 trendline near.
Tech and bio-tech index COMPX is also shown below "consolidating at the lows" and with prices trending within a defined downtrend, lower prices are still anticipated. Similar to the SPX.X, strong support for the COMPX is found between 2022.98 and 2040.00.
"Day Trader" will sell short AXP and MMM at Monday's low or lower as long as they open above this setup requirement. Illustrated below is how AXP is being resisted by its midpoints, "consolidating at the lows," and in position to stage a Day-1 breakdown spike while MMM is in a lower consolidation zone and destined towards the 76.20 line.
Trade Summary - Feb 2, 2010 No trades Week's Recap No trades |
