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Market commentary for 06/11/2010

Market commentary for 06/11/2010 

 

Good day,

 

With the daily gaps we can see why it is higher risk to stay in a overnight trade or swing trade. It was same at Thursday when SPY/DIA opened near Wednesday's high and with the morning strength the bear trap was setup. That was the reason why I was more of a bulls. In the past that is a book setup for a long, just buy after 5 min high and wait for the buying into close for a profit. Unfortunately the market changed. This market turns by the news; it is a nervous market and last few days intraday trading is not easy. Again it easy when we see the daily time frame charts. It was a gap up day and closed at the high, but if we look at the 60 min charts or maybe at the 15 min charts we can see the intraday action was not that strong. After the morning strength the indices came back to the morning low. At that moment the indecision was very high and risk was high because we could see filling gap action also. Now we can see that morning low held and indices can back up to the new high. You all know that my focus is always for lower risk setups, and only way is to look for strongest and weakest names. GS was great to us and in strong market we made great risk/reward trade. Also we had several long trades as: JOYG, MELI or SSO, I’m sure

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