Luna $ Ticks

August 6, 2008

The Sinuous Way to SPY 132/133

Filed under: Trading SPX SPY — moontrader @ 10:49 am

Yesterday we got a nice rally confirming the short term uptrend and piercing the three DMA’s, which have now become a support – at least as far as MACD Delta holds positive. I still think that we’re heading to SPY levels of 132/133, but I missed the date, which I thought would be Monday 08/04. On the other hand, what changes is the way we’re getting there. Instead of being a straight forward rally as the movement from 120.02 to 129.15 (SPY), we’re heading there through a series of ups and downs, in the same way we went from 125 in mid March to 144 in mid May, but in a reduced time scale. Remember what happened after May 19th?

The ups and downs we’re going through are tricky and they wash out the short term Bears from the market, while showing that weakness lies ahead. Here’s my idea for a date and target for the top:

08/10 is a good candidate for a top, but that’s a Sunday, which means that the target can be reached between this Friday (08/08/08, nice!) and Monday (08/11/08).

Notice also that we’re trading above the three Daily DMA’s which now have become a support. For today, 08/06, they are:

DMA 3×3 = 127.17

DMA 7×5 = 126.44

DMA 25×5 = 126.10

My guess is that we are going to hit 130 still today.

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2 Comments »

  1. The markets could have really tanked on the FME earnings this morning but didn’t. Interesting also is that the USD & CRB are about to hit resistance at the 200dma. Could be the perfect storm brewing

    Comment by Jigsaw — August 6, 2008 @ 1:42 pm | Reply

  2. I guess so, the rally we’re in is absolutely irrational, no reasons behind.

    Comment by moontrader — August 6, 2008 @ 2:46 pm | Reply


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