Since the dow sold off the opening pop on Friday to fill the gap it has had a civilized move up from there.
There is no signs of panic sellers. Sidleined money is starting to look for bargins.
I see the dow climbing back into the 13,151 - 13,500 channel. And will test the 13,500 number within the next 10 days by 8/31/2007.
Getting there in a stedy manner which looks like will happen is important.
I am a buyer here looking to re evalute after the 500 point moveup 13,500
In a reponse to my own post LOL I want to comment on the DOW futures down 100 points vs faur value.
I dont normally talk in in anything less than technical terms but I have seen some money flow occurences that are worth monitoring today.
Let me start with Friday. There was a great run up on friday in the dow with a sizeable downward move in the last 15 minutes. Regardless weather this was a profit taking opp or someone trying to short the market at close the fact remains that there was a decent amount of money invested prior to that move.
The next opening Tuesday we saw futures weak only to see the market rally up to +130 before the same type of profit taking / shorting in the last half hour.
Let me talk monet flow for an instant. There was some nice inflow yesterday specifically in the afternoon prior to the last half hour. I jut can not see these posistion going in the red much more if any than the futures are indicating.
If the market opens dow 100 and is bought back to break even then I think my pre fed meeting price target of 13,700 will be met.
The buy the dips certainly looks to be the tone on WS right now. Lets see if the open (or shortly there after) is today's low.
Not spell checking or grammer checking (and typed very quickly LOL) so go easy on me I have to scan 9:00 charts :)
I am not happy with the 13500 test.
I am still long but that is the 2nd day in a row that we sold off hard in the final 15 minutes.
The carry trades $/Yen, E/Yen, GB/Yen are up after hours as should be the Nikkei over night. Will be fun to watcnh the US open (markets that is) tomorrow morning my previously mentioned 132 oct calls are well profitable and I will put a stop on them to make sure a profit is achieved on any market weakness from here.
I would still like to retest the 13500 level on tomorrows open.
Tuesday 9/4/07 1:22 PM Looking at the last couple of days Dow looking at testing the double top from Friday at
If it trades strongly through 13,428 then I would look for a run to 13,500.
Ive heard the number 13,700 starting to be mumbled technically which may be my target pre fed meeting.
Ok DOW now trading into the 13,151 - 13,500 channel I mentioned on Monday.
If we can close above 13,151 I stand by my 13,500 test by months end.
If we close below 13,151, well I still stand by my months end test prediction barring any unforseen event but will just have to claw back into the channel in the days to come.
I see us holding 13,151 today though with 13,500 by months end.
My posistion by the way is OCT $132 DIA Calls that I have been on since last week. I have a standind sell order at $6.50 that would meet my profit target on the trade. Just so you know.