9/17/2010 Premarket | Bulls on Wall Street

9/17/2010 Premarket

 
 
 
 
 
Morning folks. futures gapping up slightly. With the QQQQ’s up nearly 1/2 percent and the SPY up .34.  Better than expected reports from some tech bellweathers have bouyed the tech sector lifting up the general market. Judging by the action when we tested our first level of support yesterday (spx 1120 spy 112ish) there are still buyers creeping around in the market.
 
 
Today is options expiration so be wary of some foolery here and there
 
The “slightly better than expected” news coupled with oversold conditions took us off the lows of the range. Now to move above the range and start a new one will take something pretty good.  The market doesnt just move in linear fashion. It has ups and downs. We are up for 2 straight weeks so we need a new catalyst to take us higher. What is the catalyst remains to be seen.

 
This is a good time to be careful. The sentiment has turned postive on the market a bit the last week. People are getting excited about trading. Are you? Exactly! those are the worst times to trade. 3 weeks when we loaded the boat off the bottom now that was a good time to load up.
 
Remember in an overbought market it just takes 1 piece of bad news to start the cascading downward. So keep stops tight. 
 
Key levels to watch in the market as we potentially pullback today
 

 

overhead resistance at spx 1130 (spy 113)   here are the key pullback support areas I’m targeting:

  • spx 1,115 (spy 112ish) :  200 day moving average

  • spx 1,104:  10 day moving average

  • spx 1,100:  Upper downtrend line recently broken

trade safe.  I am keeping elevated cash positons. 80%
 

80%.  I will use my whole account to daytrade but when i go home at night. 80%. later folks.

 

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