Monday, November 14, 2011

In the middle of the range

We started the day just under Friday's close and chopped lower. Before lunch, a quick move down got us below the morning low and all the way to 125 in SPY. We slowly got back to 125.60, support in the morning, but now resistance. Back down for a test of 124.90, which was resistance on Thursday and now acted as support. It held and we went back up towards 125.60 for the third time today.

S&P500 and Nasdaq both ended in the middle of the range they've been forming the last couple of weeks. Interesting to see if we will break lower or higher out of these ranges. But a big chance that this will happen near the end of this week of early next week.

You can find the 5m-chart SPY in the trades-section.

Daily charts DIA, QQQ and SMH:

Gold, silver, oil and the euro all travelled lower, together with stocks. No real divergences here.

Two losing trades in SPY today. The first was a undisciplined trade, anticipating the breakout of what seemed to be a bullflag. Unfortunately, the breakout was to the other side, down and not up. I should've shorted there (in hindsight it's always easier than at that very moment...).
The second trade was another long when a bottom seemed to form (I was also looking at the 2m-chart and not only the 5m-chart which is depicted below). A bearish wedge formed and I got out for a small loss after 2 bearish candles, even before my stop was hit. I regretted that move, half an hour later my first target (125.50) was hit. So this should've been a winner (not a big one, but still...)

1st trade: long SPY 126.10, out 125.89.
2nd trade: long SPY 125.30, out 125.20.

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