Monday, December 12, 2011

Still no decision...

Fake-out after fake-out is what we're recently seeing. Wednesday the market made a fake move higher, followed by a big downday on Thursday and a lower low. Friday was a huge move up, making a higher high. And today was another day down with a new low... No way you can swingtrade such a market, not with tight stops anyway. That's why I stick to daytrading (or staying in cash). And that's also why it's not unwise to use smaller positions, considering all these fake moves and volatility.

Despite the morning-drop and the fact the market had extreme difficulties bouncing of the lows (it took over 3 hours), we did see lot's of buying coming in about half an hour before the session ended.

Tech and small caps closed near their opening-level, with tech outperforming the Dow and S&P, albeit just a little.

Daily charts DIA, SPY, QQQ and IWM:

Metals seemed to lead the way down (see pre-market post) and they didn't bounce like stocks did near the end of the session.
For oil, the 97.50-level is important as support, a close under it and 95 is next.
The euro lost about 1.5%, making new lows and trading close to the October-lows.

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