Friday, December 5, 2008

12.05.08 - Encouraging Mid-day Action

After an abysmal jobs report (-533K), I think today's -2%-plus loss is quite impressive. Thus far we have been stable at S1 with a flattened VWAP. Tick and AD line slopes have been mostly upward since the early morning trade. I'm still surprised last night's after-market held in as long as it did; it was a real opportunity to build substantive short positions. Ironically, some level of covering today may be responsible for this session's relative stability. Let's see if it can hold.

PS - Note that XLF is up +1.4% on the day.

11:15AM PST - Program traders wouldn't let us break the 5-day moving average (SPY $85.46). Looked possible for about 12 nano-seconds. At least it was an easy scalp. Still, we are holding in fairly well.

So "Doc Mango", are you going to set up a twitter account or no?

11:45AM PST - A series of large up bars finally has us through both the 5DMA and the Pivot, which should act as support into the close (Friday caveats and all). Although there are many signs of short-covering, we'll take what we can get as the VIX drops to the low 60s. Or is the market starting to look ahead?

12:20PM PST - TRADESTATION -- Complete utter flippin highway robbery, covers my short TLH positions at a flippin minor loss. If they didn't have the inventory, they shouldn't have let me short them and THEY should eat it. Explitive, explitive, SEC mandate my Hawaiian explitive. BOND ETF'S for flippin sakes! Arghh. PS -- SPY resistance at R1. Very technical day.

CLOSE - And there we have it -- Dow +272. Check in for the weekend update and see you Monday.


vivek said...

I suppose there's TBT and PST but no inverse for TLH yet.

Jeff Pietsch CFA Esq said...

Thanks, don't know how I've missed those... it's become increasingly hard to short certain ETFs, very strange.