Wednesday, December 7, 2011

Nice move, but too much divergence?

What started like a possible break lower ended on the brink of new recent highs.
The market gapped lower and found support on the lows from the last 5 days. While the Dow made a higher low, the other indices all undercut the lows of the last 3 days. But nonetheless, a nice rally started, with a pullback after lunchtime and than a big rally in the last 45 minutes. A pullback in the last 5 minutes made small caps and tech end near yesterday's close, S&P and Dow up slightly. Still a nice move from today's lows and on rather good volume.

5m-chart SPY:

Daily charts DIA, QQQ and SMH:

Precious metals: while silver and copper were down a bit, gold went higher, but only slightly.
Oil: in between 100 and 101, still consolidating.
Euro: still at the 1.34-level, breakeven.

The stop in TZA held in pre-market and I added when price started to pullback near the morning low. But I went out of the position once the morning low was broken. I added @27.63 (first part long @27.16), out all @27.40, breakeven.

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