Tuesday, December 18, 2007

12.18.07 - Sell the News?

A heavy sell program hit the tape about half an hour ago (see the large dashed green spike). This time it was met with some buying and the Cumulative Tick and A-D slopes appear to have flattened.

This could indicate an important level of support, but trend is still down so wait for more confirming strength and a reversal out of bonds before considering buying in for a bounce trade.

1:10PM CST UPDATE: Did you catch it? Important break through the VWAP and now test of the pivot. I'd like to see bond rates rise a tad indicating potential rotation "into risk."

1:23PM CST UPDATE: We are getting that rotation along with more volume than we've seen in a few days. Shorts are covering and money is going to work. Bullish Hammer. Each upward thrust typically will be associated by a leveling, or shallow pull-back in time, which is usually buyable. Speaking of which, please don't forget to trail stops!

1:55PM CST UPDATE: Bounced down off of R1 (dotted blue line). Look for support back at the pivot (dotted yellow line) else consider exiting if you are just a scalper. I don't think it's done yet, though -- but -- as always, respect price.


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