xpertstocktrader
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Market commentary for 05/31/2007
Good day!
The bulls are back!!! Yesterday's action showed that even after the strong pullback we saw in the market last Thursday, we still didn’t have a short signal. The market found strength yesterday, with the SPY and the DIA saw new daily highs. The QQQQ still has a bit of a way to go to see its' previous high. The day started with a gap down into Tuesday's low. That brought concern for the possibility of selling, especially in the QQQQ, which could have easily become a trap. Because of that, my main focus at the open was to scan for possible trap charts. Our PAY trade was a textbook trap chart. After the initial weakness in the market, the rest of the day was reserved for the bulls.
http://www.ivicacharts.com/diagrams/2007/05312007dia.jpg
http://www.ivicacharts.com/diagrams/2007/05312007spy.jpg
http://www.ivicacharts.com/diagrams/2007/05312007qqqq.jpg
On the 60 min charts, we can see a nice comeback with a strong pace that finished with new intraday highs and new daily highs for the SPY and the DIA. Both broke to just a slightly higher high, however a new high nonetheless.
http://www.ivicacharts.com/diagrams/2007/05312007dia60.jpg
http://www.ivicacharts.com/diagrams/2007/05312007spy60.jpg
http://www.ivicacharts.com/diagrams/2007/05312007qqqq60.jpg
More importantly right now is that the close would indicate more buying throughout the morning. The weekly chart supports this action, but we can’t forget last Thursday's selling volume, which adds some caution to this action. I still think that we could see a scenario for a strong daily move up on large volume, which could signal the end of the weekly uptrend. The number of open long swings waits for that scenario. My focus hasn't changed. I will continue to look for intraday moves, and still believe that we are in a higher risk environment right now. The reason for that is the possibility of double top patterns especially if yesterday's volume doesn't support the long side. Volume is important now. If we see a strong move up, it must be supported with volume as that will prove that buyers are truly interested in new highs- not just slightly new highs or range action. If we will have that proof for a daily breakout to new highs, I will look to add positions to our open trades.
If you have any questions, please feel free to contact me.
Good luck trading today!!!!
Ivica Juracic
[email protected]
Good day!
The bulls are back!!! Yesterday's action showed that even after the strong pullback we saw in the market last Thursday, we still didn’t have a short signal. The market found strength yesterday, with the SPY and the DIA saw new daily highs. The QQQQ still has a bit of a way to go to see its' previous high. The day started with a gap down into Tuesday's low. That brought concern for the possibility of selling, especially in the QQQQ, which could have easily become a trap. Because of that, my main focus at the open was to scan for possible trap charts. Our PAY trade was a textbook trap chart. After the initial weakness in the market, the rest of the day was reserved for the bulls.
http://www.ivicacharts.com/diagrams/2007/05312007dia.jpg
http://www.ivicacharts.com/diagrams/2007/05312007spy.jpg
http://www.ivicacharts.com/diagrams/2007/05312007qqqq.jpg
On the 60 min charts, we can see a nice comeback with a strong pace that finished with new intraday highs and new daily highs for the SPY and the DIA. Both broke to just a slightly higher high, however a new high nonetheless.
http://www.ivicacharts.com/diagrams/2007/05312007dia60.jpg
http://www.ivicacharts.com/diagrams/2007/05312007spy60.jpg
http://www.ivicacharts.com/diagrams/2007/05312007qqqq60.jpg
More importantly right now is that the close would indicate more buying throughout the morning. The weekly chart supports this action, but we can’t forget last Thursday's selling volume, which adds some caution to this action. I still think that we could see a scenario for a strong daily move up on large volume, which could signal the end of the weekly uptrend. The number of open long swings waits for that scenario. My focus hasn't changed. I will continue to look for intraday moves, and still believe that we are in a higher risk environment right now. The reason for that is the possibility of double top patterns especially if yesterday's volume doesn't support the long side. Volume is important now. If we see a strong move up, it must be supported with volume as that will prove that buyers are truly interested in new highs- not just slightly new highs or range action. If we will have that proof for a daily breakout to new highs, I will look to add positions to our open trades.
If you have any questions, please feel free to contact me.
Good luck trading today!!!!
Ivica Juracic
[email protected]