Monday, September 12, 2011

More trouble from the Eurozone

Still a lot to do about the Eurozone-troubles and futures opened 1.5% lower. And while Obama is trying to get his job plans approved, Bank of America will cut 30,000 jobs. Ouch, not helping!

An early morning rally got stopped near Friday's close-level. From there on we chopped lower, forming a wedge. This wedge got broken on rumors that China would help Italy. There was a lot of unclarity if the news was false or not, so stocks dived down and later on spiked again, resulting in a very strong rally into the close.

5m-chart SPY:

Tech was performing better than the rest, creating a divergence between Nasdaq on one hand and other major indices on the other hand. Oil was rallying, but gold and silver got hit bad. While almost everything moved in sync today, gold and silver didn't move up as much as stocks did in the afternoon rally.

Indices still closing inside the presumed bearflag, but we went outside of it intraday. So tomorrow will be key, will we reverse or add to today's strength?!

Daily chart DIA:

My inverse ETF's went well and 1/3 was sold in pre-market. The balance was closed together with the ES-futures early in the session, basically breakeven. But I went long more ES-futures 5 minutes in the session (strong open on a big gap down after two downdays) and sold half an hour later for +10 points.
SGG and BAL doing just fine, so keeping them in my portfolio.

The closed trades:
BGZ: +2.57%
EDZ: +3.72%
SKF: +1.78%
SPXU: +2.48%
FAZ: +2.81%
TZA: +1.88%
ES-futures: 'the hedge': -8.25 points, added morning trade: +10.75 points. All in all not a bad day!

An interesting article about volatility thru the years, spotted by The Reformed Broker, aka Joshua Brown.

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