Wednesday, January 28, 2009

Technical Picture - Stimulus Induced Breakout

The market broke out of the box with a gap open and extended into midday. After a sideways drift, the market established new session highs prior to, and shortly after, the Fed, before succumbing to some choppy profit taking followed by a late push into the close.

Triggering the broad based push off the open was word that the government is working on a plan to help banks dump toxic assets. This would help banks protect against losses stemming from asset write-downs.

Broad based rally with Finance pacing the way + 13% and gold/silver on the losing side.


TraderLars said...

Jamie... as always... great blog...

you should definitely submit articles to seekingalpha... they need some real help over there... too many precious metal salespeople!! lol

thanks for asking about the surgery... i had to go back twice and will have to go for another round again this year. oh well i am ok for now.

some real good oil trading this week. american indices are forcing me to adjust my stops... asian indices are nice as always...

good trading... and great analysis of the markets..

best always

Jamie said...

Thanks Lars,

Today was a welcome relief from the chop earlier this week. Hope we can get some follow through.