Massive run up today, there's gotta be some period of correction for this. Our last run up like this was given back plus more...I'm thinking about taking a profit anywhere in the mid 80's with resistance. Any thoughts on tomorrow's market?
Its a good idea to short such a large swing, but I kinda look at this volitile market like fishing. Last time we had a spike like this we had a big rally the next day early then an sell off. Id shoot high tomorrow and try to get in at panic buy prices the payoff could be big for the short term. I have been trading the volatility with indexes only, im not short but I have a limit sell for 25% of my dia in at 95 to buy back cheaper. This market is irrational look for panic up and down.
1. Gap fill at 90 has been satisfied. 2. Stochastics showing extremely overbought. 3. Priced too far above moving average to be maintained without a correction (ie no support) 4. MACD divergence indicates a likely downturn to compensate 5. DOW futures are negative after hours 6. Previous run ups: Oct 13, gain of $12 followed by a decline of $10. Oct 16-20, gain of $9 followed by a decline of $13. 7. After this many negative days, there are going to be more sellers than buyers after an $11 dollar one day rise. 8. Bollinger upper band broken and will require a return to price channel. **Technicals based on a 10-day chart for ACTIVE SHORT TERM PURPOSES. Long-term, I am bullish. Tomorrow, I'm looking for a quick market correction.
futures look red already...im a little nervous about the possibility of an early spike but futures are starting to look a little more encouraging to the down side. Any time I see a run up of 900 points I think to myself...this is a short day trade opportunity...I'll be out ASAP though when I see support
I put around 90-91 too. If this baby go up to 94-95? can't go wrong shorting here. I guess a lot of bear would like to put at that range. I'm looking for another put entry at 92-94 then cover at 83. Today rally was way overbought.