Luna $ Ticks

October 15, 2008

Going Long Again

Filed under: Trading SPX SPY — moontrader @ 3:43 pm

This is more of a quickie. I’m expecting a bounce up tomorrow, which can be quite sharp considering that volume today was decreasing as prices were going down. Plus, there’s another reason for my position:

You can see very clear the channel that I draw, with the 25% and 75% lines. We closed touching the very bottom of the channel, so we might be heading to a good bounce up. Plus, today’s low was 1 point shy from Friday’s close, from where the market gapped up on Monday to rally through the opening of Tuesday.

However, daily indicators are down, even Stochastics is pointing down again, and we closed below DMA 3×3. It’s a pretty risky position I got today, but I got it a couple of minutes before the closing bell. As I said before, and because of the expiration on Friday, I think we are heading up to then drop again, maybe below last Friday’s bottom.

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4 Comments »

  1. Hi Moontrader,
    When you say “…because of expiration on Friday, I think we are heading up to then drop again…” do you mean that you think we are headed up through Friday close then next week go down, or go down before Friday expiry close???
    Thanks in advance.

    Comment by jj — October 15, 2008 @ 4:17 pm | Reply

  2. Hey JJ, I think we can have a good bounce up through Friday, and THEN drop again.

    Comment by moontrader — October 15, 2008 @ 4:33 pm | Reply

  3. Noticeable on a daily chart i have a low on thursday and a high on friday. Also a high for the CAC on Monday.
    I still have a low on the 28th,though some are looking for 22nd/23rd as perhaps a final low.
    So a move up to 960?(strong resistance,though this market likes to move a lot at the minute),and then down to a low somewhere.
    3200 for the CAC is very strong, from the 2002/2003 action so a weekly close below there would be very bad for all martkets as the CAC started its Bear before the rest.
    Good luck everyone.

    Comment by Barcode — October 16, 2008 @ 8:01 am | Reply

  4. Barcode, if might even go back above SPX 1000, but that has to happen between today and tomorrow. And then down again. As I said in a previous post, there are some signs we are approaching a bottom, but no clear sign it is in place already.

    Comment by moontrader — October 16, 2008 @ 8:30 am | Reply


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