Thursday, October 13, 2011

Still undecided

We started with a gap down and indices slowly moved lower. But halfway through the session, price broke the intraday trendline (see SPY-chart below) and went for the gap fill. That was exactly the level where the 'rally' stalled and suddenly reversed with over half an hour to go before end of session. Bulls didn't want to give up the fight and fought back in the last minutes of trading. However, the volume today was below recent averages, lacking conviction. I highly doubt we will see new highs in the next days. We need consolidation or a pullback to digeste the big move made since 10/4.

Tech once again led the market, about 1% difference with Dow and S&P. Copper and silver were losing >2%, gold and oil kept losses smaller.

SPY-chart 5m-chart:

Below the daily charts for DIA and QQQ:

Amazing how resilient tech is, especially semiconductors, hereunder the daily chart for the semi's-ETF:

One small tester with TZA long, out for a small loss. I expect a move down one of the following days. Will go long TZA again when the action/price/volume looks right. Edit: long 1/4 position TZA near the gap-fill-fail (is that a word?)

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