Wednesday, December 12, 2012

Copying Yesterday

Futures closed good yesterday, market shot up a couple of points right after the close of the regular session. So the futures chart gave a nice daily candle, closing near the highs. where as the ETF's didn't look so good. And that's how the market tries to fool us, time after time again.

Today was almost a copy of yesterday's action. At 12.30, FOMC statement was announced and indices shot higher. At 14PM, Bernanke spoke and the market gave back all of it's gains and then some. So 2 bearish candles in a row on the daily charts for the ETF's (see chart below). This screams: take profits and/or hedge your longs.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
Oil and silver made +1% gains, while the euro and copper were up rather modest.
Gold traded slightly in the green.

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