The advance stalled when the S&P tested it's June peak. The combination of extended technicals and disappointing outlook from CAT's conference call, and the Fed Chair's outlook for a slow recovery, led to a steady but only modest slide into early afternoon trade. However, no follow through developed with the S&P stabilizing near congestion and bouncing into the close allowing the markets to extend their winning streaks (Nasdaq up 10 in a row) and all majors setting new multi-month closing highs). But the SPY carved out a red hanging man and the S&P a green one. Haning man has to be confirmed.AAPL and SBUX rally on earnings after hours.
The H&S top in POT which I described last night was broken on the open when price gapped and tested Friday's highs. However, sellers fought back. A bull/bear battle ensued. The initial price action was like a yoyo with wide spikes up and down, but the bears had the advantage as measured by lower highs. Eventually, we reached price/volume contraction and a bearish rounded pattern took shape, leading to expansion on the down side.
MOS forming H&S top intraday at $48.00
CNQ was a NRB at base of support.
5 comments:
Nice job Jamie - a fairly tough day IMO.
Thanks Jim,
I had a narrow focus list and everything just played into my strategy.
I also like the MOS trade and its gap fill from $48 to $45
Very good trades!
Since your focus seems to be on short term trade, do you still think market analysis at daily level is necessary? How does it affect your trade?
X
Good question. I do day trade the SPY and QQQQ on a regular basis, so the market analysis helps in that regard. I'm also managing my long term investments and keeping up-to-date with key markets and sectors gives me an edge with swing and position trading.
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