The SPX gapped up again as it has been doing every Monday morning lately. The only difference was that it drifted down instead of up the rest of the day.
Volume will likely drop off going into the holiday. We will be focusing our trading on the morning session.
ShogunTrading.com
Friday trading was a bit choppy as the markets fell in the morning then recovered to close down slightly on the day. The pattern we have seen most of the year is to turn around and drift to new highs after pullbacks like these. Expect the same until the short side can prove itself on a longer term basis. Hit & Run trading in the meantime.
ShogunTrading.com
Gold continues up, the dollar continues down, and the markets continue up as has been the case for the last 7 months. The longer this continues the more tempting it is to expect the bubble to burst and go short. I suggest keeping those expectations out of your thoughts and following the trend. If it does burst it will be a hard and obvious move.
ShogunTrading.com
Veterans Day was low volume as expected with US banks and the bond market closed. Be careful at the open Thursday with Unemployment Claims coming out before the open. We also have crude oil inventories coming out at 11AM and Sec Geithner speaking at 11:30AM.
ShogunTrading.com
It has been a news-filed week. The Fed announced they will keep interest rates steady for the foreseeable future which should further weaken the US dollar, but on the other hand foreign governments want to support the dollar to protect their investments. Then on the other, other hand India made a large purchase of gold using their US dollar reserves. Unemployment continues to rise yet GDP and productivity is supposedly up (if you trust the numbers).
While the news makes catching longer term trends almost impossible the extra volatility has been good for us on the shorter term charts. We’ve been most active in FAS, FAZ, AIG, USO, AMZN, AAPL, RIMM.
Stick with the short term charts for Friday and we can start from scratch next week. There won’t be any major news until Unemployment Claims before the open Thursday.
ShogunTrading.com
The market continued their pullback on Wednesday ahead of 2 important reports that are due out Thursday before the opening bell…
-Advance GDP 8:30AM EST
-Unemployment Claims 8:30AM EST
We also have the question of the Federal Reserve’s intervention in the markets. Have they stopped their “buy program” as the federal government is reaching it’s debt ceiling? If so we could see a bigger correction soon.
ShogunTrading.com
We had a bit of a back-and-fourth day as the markets were being pulled down kicking and screaming.
For Wednesday trading…
-Durable Goods report out at 8:30AM EST
-New Home Sales at 10AM
-Crude Oil Inventories 10:30AM
Wait for any reactions to these reports to die down and a trend to form before trading heavily.
ShogunTrading.com
The markets continued their pullback from Friday. If they continue down it will likely be after a bounce.
Consumer Confidence at 10AM EST and Sec Geithner speaking right after the close at 4PM EST.
ShogunTrading.com
We’ve had a great month so far trading FAS, EBAY, GS, AIG, AAPL, AMZN, SLB, PNC, FDX, FAS, FAZ, GLD and others. Afternoon trading has been great this week. The indices dove hard Wed. afternoon then completely recovered Thursday.
We are in the middle of earnings season. There is daily news that effects the markets on a short term basis. Be cautious of that but don’t forget we are in a long term uptrend.
ShogunTrading.com