Market Wrap 12/28/2011

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Evening folks! Looks like market has once again faded at resistance.  We have had overbought conditions for a couple days coupled with sitting the top of the range we had a bit of a fade today.  The open was pretty much the high of the day as the market had a trend day.  any and all attempts to bounce were faded.  Besides a 1pm minibounce (which was very feeble) we had no real upticks intraday.  Metals got whooped with Silver down nearly 6%

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it didnt feel like a big down day though.  We’ve seen this action before.  Its very tough to break the top of a trading range without significant developments.  this market has been range bound since august to see a drop when we are at the top of the range after being up so many days in a row is not surprising and not alarming.  They barely budged and the smallcap sector still had some fireworks with breakouts all over the place. The overall action in some of the big boys like AAPL and GOOG was just fine.  Pr plays, tax loss plays all still working.  Till we start really breaking some key levels of support namely the 20, 50 day moving averages I will be paying attention to individual stocks and 1/2 ignorning the action in the indices.   If we dip more tomorrow we do have 2 strong layers of support underneath in the 20dma and 50dma.  That should provide us at least some cover momentarily.  But it may not if you look at the daily chart on the s&p this market tends to the run to the upside and downside for periods of 4-5 days.  That could be in the cards again which is why im keeping my overnight risk to a minimum im trading aggressive during the day and the positions i keep overnight  I have a  profit cushion on.  for example peix is at 1.17 i bought this at 1.01 so even if it gaps down 5-6% tomorrow im still in profit so my risk is still mitigated.  When markets start dipping down thats the way i tend to manage my overnights I sell the weak ones and ride up partial positions on the ones that i have good profits.

Dont really got much else to say its been epic trading here today…….again.  SQNS, PEIX, FFN all were 10% plus trades.  I had some big gains in EMKR AND HDY also but screwed up the partial sells as i had big profits but let my last 1/2 positions stop out at breakeven giving back gains (whoops!)

tomorrow should be interesting. 1 down day doesnt make a trend we need to see follow through and a break of some support levels if that happens then ill get defensive.  till then its just booooooooooooooooooom time

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