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My passion is trading stocks. I am a student of the markets just like you. Follow me as I learn new things and analyze the markets. http://www.swing-high.com
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  • Post Market Analysis, Wednesday October 21: Big Sell Off in the Last Hour 0 comments
    Oct 21, 2009 04:45 PM | about stocks: BA, WFC, MS, AMGN, MMM, MRK, T, TRV, MCD, AXP, MSFT, HON, SLB, UPRO

    There is no other way to say it, the markets showed real weakness in the last hour of trading. The VIX was down about 3% for most of the day and finished up 6.3%… that’s a huge move in the VIX, definitely corroborating the drop we saw. The TICK behaved all day and supported the market action. The TRIN, however, did not corroborate the move, which takes some validity away from the bear argument. The TRIN tells us that there was not a significant increase in volume flowing into stocks on the decline. Volume is one of the biggest sources of confirmation a trader seeks, and it did not confirm today’s move. On the daily chart of SPY, we are still holding up in the high base formation. $110 has proven to be serious resistance as expected and it seems like the markets simply cannot gather enough strength to cross it. The gap from last Wednesday remains unfilled.

    video

    Look out for upcoming earnings the rest of this week. Here are some of the big ones to name a few: Today- BA, WFC, MS, AMGN; Thursday- MMM, MRK, T, TRV, MCD, AXP; Friday- MSFT, HON, SLB. We also have jobless claims coming out tomorrow morning as well as home sales on Friday morning. Keep your head down and trade smart the rest of this week. Be very careful how you go long in this environment, but also keep in mind that the general trend is bullish right now. We have major resistance to fight through after a multi-bar run-up. I would like to see more consolidation in this high base or a bull pull back going forward.

    Thanks for being a part of Swing-High.com! Remember to always trade with a stop loss and manage your risk appropriately.

    Take it easy,
    Jason
     

    Themes: VIX, TICK, TRIN, Technical Analysis Stocks: BA, WFC, MS, AMGN, MMM, MRK, T, TRV, MCD, AXP, MSFT, HON, SLB, UPRO
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  • nice sell off on the major indexes $SPY, $DIA, $IWM, $QQQQ, $XLF. Entered long positions in $FAZ, $EDZ, and $TZA throughout the morning
    Nov 12, 2009
  • put an order in to pick up some $fas at $70.17... will probably hold it for this up leg if there is one
    Nov 04, 2009
  • the vix should have support at 30 now... $TICK, $TRIN, and $VIX all behaving slightly bearish today after a bullish open
    Nov 02, 2009
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