Tuesday, March 29, 2011

What dip?

Markets are trading above pre-earthquake/tsunami levels since a couple of days. The Dow leads the way, followed by the S&P and only the Nasdaq lagging somewhat. The day started with a dip, but soon the reversal came and the only way was up. All indices found support on one or more moving averages and bounced nicely.

Commodities led the rally, with oil doing very well. Rare earth elements had a very good day, up big in pre-market and only going higher from there on. Gold and silver consolidated, they might get ready for another rip higher.

Daytrades
One trade today, LULU. Not the best setup but I took it because I was expecting some follow-thru after the big rally yesterday. In after the bounce of the 9EMA, but the stock first needed some more consolidation. This got me worried somewhat, which resulted in an early partial sell. It still was a decent win, but should have been more without the 'panic-attack'. I took further partial profit at the ORH-level, which was also unnecessary, since volume came in big which was an indication of higher prices to come.
Last partials at the Fib-level (123,6 instead of 138, I will remove that level. Yesterday I said to use 138...) and near the brake of the 9EMA. LULU took out the 89-level later in the day. Maybe I should always keep a small part (with stop above BE) for a possible end-of-day rally.

I was also looking for an entry in SLB, which would be ideal after a bounce on the 9EMA and the break of the high of the previous bar. However, while entering my order, price shot up fast and I didn't want to chase it. Too bad, because the stock was a very nice winner in a leading sector.

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