Thursday, July 9, 2009

07.08.09 - Small Lift off the Pivot

We have seen a positive range between the opening highs and the daily Pivot. While cumulative tick, up volume and the AD line all look positive and I'm liking the leadership, we are testing the top end of that range now and momentum has been slow to build. Therefore, while still optimistic for a more positive close today, I am trailing stops on my long positions that have already reached their profit targets.

Quick Chart Study:

In answer to the chat room question -- long the overnight session/ short the daily in the SPY over a ten-year period, frictionless ($ scale):


Links from QE:

A few links for your chat guys that pertain to yesterday’s discussion:

On trading deep in the money options:

o http://quantifiableedges.blogspot.com/2008/06/options-for-short-term-trading-why-and.html

o http://quantifiableedges.blogspot.com/2008/06/using-options-for-short-term-trading.html

Stops:

o http://quantifiableedges.blogspot.com/search/label/Stops

1930’s market environment:

o http://quantifiableedges.blogspot.com/2009/03/intermediate-term-consequences-of-30s.html

Best,
Rob

Never Investment Advice

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