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Michael Noonan Edge Trader Plus Michael Noonan is the driving force behind Edge Trader Plus. He has been in the futures business for 30 years, functioning primarily in an individual capacity. He was the research analyst for the largest investment banker in the South, at one time, and he... More
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  • S & P - Trend Confirmed Down. A New Downswing Under Way. 0 comments
    May 16, 2010 7:06 PM

    Sunday  16 May 2010

     It was necessary for the market to show downside follow-through if a new
    selling wave were to get underway. [See S & P - Market Showing Weakness,
    last paragraph].  We had an objective of 1125 as a potential support, and
    that area did hold.  Half the short positions from 1158 were covered at 1129.
    This was done simply as a money management tool, and lowering stops
    down to 1156 makes this a totally risk-free trade.

     It did appear that there was short-covering at Friday's lows, and that gave
    credence to the anticipated initial target of 1125.  When one sees that kind
    of market activity, accepting partial profits makes sense, for it gives more
    flexibility in decision-making.  With less risk exposure, it is easier to sit
    through a normal type of counter rally and view it as a potential for adding
    to the short side, as opposed to staying fully positioned,  "watching paper
    profits diminish," and being distracted by normal market activity.  Trading
    still very much has a psychological element to it, even with fixed rules.

     Not every day is a significant event, and what we look for now is
    development of present tense market activity to watch HOW it develops,
    for pertinent clues will be provided to give further direction.

     Still short.

    S&P D 16 May 10

    Disclosure: Short S & P
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