Thursday, January 26, 2012

Technical Picture - Reversal Bar


Today the SPX carved out a reversal bar - higher high and lower close from the previous session. We are looking for minor corrective action to bring us half way back to roughly 1300 before resuming the uptrend towards our 1344 target.

4 comments:

john said...

Posts two day in a row!

Fuzzy charts lately - I agree that it needs a pullback. Now that the rest of us have received the FED "news" that helped drive it relentlessly higher, it will finally have one.

Jamie said...

Hey John,

Exactly, ES futures traded half way back overnight and disappointing GDP numbers knocked us back down.

john said...

Jamie,
Check out 30year yields - TYX.

The 100day SMA has been important in recent years. Last week TYX poked above the 100day after a long down trend. Since the FED announcement last weed, rates have come in - gapping down this AM where I started a position shorting long-term treasuries by shorting TMF and by buying TBT in my IRA (mental stop to be triggered by 1/13 low in TYX).

Some decade, this will be the trade of the decade. Thoughts?

Jamie said...

John,

I'm not well versed in treasuries. All I can say is it's an aggressive trade given today's gap up. Smart to hedge. If it works, will be good for stocks.

I'm watching ES Futures. Half way back short kissed the 50% and now pulling back. Interested to see if the European session breaks the shorts.