Here's a look at the market on Feb 9 2007
Incited by positive foreign markets overnight, momentum traders bought up the indices at the open but there were no follow throughs. The market slowly faded until advance-decline fell below zero and some program selling ensued in the afternoon with a short covering at the end (There is a good description of how institutions program this in his book TraderVic). The sell off was coincided with Fed's Fisher's comment on inflation outlook on Friday but the sell off itself was way too systematic to have been triggered by anything other than a prearranged plan (options, anyone?). We haven't had a Friday sell off getting a follow through on Monday in a long time (we had either or but haven't had both during the current rally), so it is a bit too early to tell if a correction is coming. NDX keeps faking to the upside then fails, however, and with many of its majors lagging, it will require a significant catalyst to find an upward momentum.
Dow Daily
http://img259.imageshack.us/img259/9001/dowdailyfeb92007us7.png
Dow 60 min
http://img259.imageshack.us/img259/7966/dow60feb92007sj0.png
S&P Daily
http://img256.imageshack.us/img256/6238/spdailyfeb92007so5.png
S&P 60 min
http://img256.imageshack.us/img256/3088/sp60feb92007fo1.png
NDX Daily
http://img163.imageshack.us/img163/1659/ndxdailyfeb92007ri2.png
NDX 60 min
http://img163.imageshack.us/img163/6171/ndx60feb92007ge8.png
* This is the last time I post my comments on this thread as I find it a bit redundant to do it since I already have a website where I have more options. I plan to post a broader array of charts, including er2, crude oil and currencies. No pecuniary interest though, as I do this strictly to gather my thoughts and prepare for the next trading day. For me as a trader, there is nothing more gratifying than a decent profit from a well planned and well executed trade. Hope you've enjoyed and happy trading!
Incited by positive foreign markets overnight, momentum traders bought up the indices at the open but there were no follow throughs. The market slowly faded until advance-decline fell below zero and some program selling ensued in the afternoon with a short covering at the end (There is a good description of how institutions program this in his book TraderVic). The sell off was coincided with Fed's Fisher's comment on inflation outlook on Friday but the sell off itself was way too systematic to have been triggered by anything other than a prearranged plan (options, anyone?). We haven't had a Friday sell off getting a follow through on Monday in a long time (we had either or but haven't had both during the current rally), so it is a bit too early to tell if a correction is coming. NDX keeps faking to the upside then fails, however, and with many of its majors lagging, it will require a significant catalyst to find an upward momentum.
Dow Daily
http://img259.imageshack.us/img259/9001/dowdailyfeb92007us7.png
Dow 60 min
http://img259.imageshack.us/img259/7966/dow60feb92007sj0.png
S&P Daily
http://img256.imageshack.us/img256/6238/spdailyfeb92007so5.png
S&P 60 min
http://img256.imageshack.us/img256/3088/sp60feb92007fo1.png
NDX Daily
http://img163.imageshack.us/img163/1659/ndxdailyfeb92007ri2.png
NDX 60 min
http://img163.imageshack.us/img163/6171/ndx60feb92007ge8.png
* This is the last time I post my comments on this thread as I find it a bit redundant to do it since I already have a website where I have more options. I plan to post a broader array of charts, including er2, crude oil and currencies. No pecuniary interest though, as I do this strictly to gather my thoughts and prepare for the next trading day. For me as a trader, there is nothing more gratifying than a decent profit from a well planned and well executed trade. Hope you've enjoyed and happy trading!