Tuesday, March 20, 2012

Tech 'Strong', But Everything Else Weak

A big gap down got bought about 15 minutes into the session. From there on the market slowly crept higher. Nasdaq even managed to make new highs, but the other major indices all stayed below yesterday's closing price. And just like yesterday, the close was weak and gave today a bit of a bearflag-look.

5m-chart SPY:



Daily charts DIA, SPY, QQQ and IWM:



Euro, oil, metals
Silver, copper and oil got a beating. Gold also went lower, but kept losses under control.
The euro traded almost level with yesterday's close after a small intraday drop.


Trades
INSP got dumped in the first minutes of trading, out my last part @13.16. Entry was 12.18 and average on the trade was 13.05 (+7.15%).

SPY was basing beautifully right under the 140.25-level. I went long when price overshot that level.
Entry at 140.32 with SL 140.19. First exit 140.55 and second/last part @140.45.

In hindsight, a trade in QQQ would have been better. Tech normally leads rallies in bull markets, so this was probably the way to go. Intraday pullbacks were also more shallow in QQQ, especially the one near the close.

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