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Post-market 3/13/08

I am again still not going to post everyday but when I post, I will now split my homework in two: pre and post-market. Pre-market is the morning prior to trading with overnight news and futures. Post-market is after the trading day, mainly charts and reviews. Again, I fully understand this may not be useful to anybody else. This is basically my notebook first and foremost.

Roller coaster session today will a lot of activity and a lot of different opinions on the current situation. Everyone is trying to speculate on the markets mood: bearish or bullish. The fact that everyone opinions differ demonstrates are unclear signals are at this point. So be cautious out there.

Even short term trading gets tricky in these choppy markets. Market opens up down you end-up with a few good shorts and get squeezed out at lunch time. The reverse also applies.

Here is the trend table for today:

Intermediate Short-term
Dow Sideways Sideways
NASDAQ Sideways Sideways
S&P Sideways Sideways

Only DOW charts today:

The Dow had huge gains 2 days ago but remained in range since. Right after the 400 points gain from Tuesday, we have two very short bodied candles stuck between 11900 and 12200. We have several levels to break before we can really make sense of this market. The next target is 12400 and than the big 12800 which is our resistance since the beginning of the year. The 15 minutes chart clearly illustrates just how choppy these markets get. The open was on the upside Wednesday and we closed the day down. The reverse happened today with an open on the down side and a reversal midday. A lot of indecision right now and not a good time for long term moves for sure. As you can see, the open and the close have tremendous volume and do present good day trading opportunity. Just honor your stops and watch the reversals.

Here is a chart of interest. The lead came from Alan Farley at Hard Right Edge. A nice coiled spring setup right near the prices I like. HL is approaching the December highs again. The trend seem to be following the pattern. Jumping up a couple of points and consolidating. We could see a nice breakout right out of the current consolidation phase.

Happy Trading!

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