Thursday, October 20, 2011

Support holding

We opened flat and about an hour and a half into the session, market started to drop. But after another two hours, we broke back higher untill the morning highs acted as resistance.
Still, just like yesterday, tech was lagging other indices. Let's see how that works out.
Back to SPY. 122 was support/resistance a few times the last couple of days. And today was no different, it acted as resistance after the midday turnaround rally.

SPY 5m-chart:

Daily charts for DIA, QQQ and SMH:

Precious metals had another bad day, but gold and silver only suffered minor losses compared with copper (-4 to -5%).

I was still long EUO and took 1/3 profits @18.40. Holding the rest as long as no higher highs are made (on the daily chart that is).

I went long EDZ and TZA when they broke the trendline formed on the hourly charts. EDZ long 25.23 with SL24.00 and TZA long 40.71 with SL38.72. EDZ seemed stronger and that proved to be right when I got stopped out of TZA and EDZ was still way above my stop. They were both ment as swingtrades.

When the market turned, I went long SPY as a daytrade (see first chart of today), which could also be interpreted as a hedge against the other positions. However, I saw strength; good price-behaviour and volume, so that was the main reason for going long SPY.
Long SPY 120.68, out 1/3 @121.10, 1/4 @121.70 and the rest @120.92 (once again I raised my stop too aggressively). The SPY-gains almost made up for the TZA-loss.

Tomorrow I will be away for a 3-day weekend in the Belgian Ardennes. That means no blog post tomorrow, the next post will probably be Monday.

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