Huge relief rally after SPY managed to hold weekly 200 MA.
The bounce was due after 8 down days and multiple indicators was showing extreme over sold conditions.
Daily charts showing 8 EMA resistance coming up. After 5% run up in one day things get trickier now. Market can easily have a multi day bounce given extreme oversold conditions.It could even test that 260 level but there is no reason to think yet , we have seen the bottom and it is a start of another up trend. Bear market rallies tend to be violent and no exception here. Follow through action in coming days or failed bounces will provide us with more clues. Too much technical damages were done to charts and it will take months to heal. Meanwhile , keeping an open mind and trade the price action.
We played the bounce today with small cap etf, TNA and biotech etf LABU. Since they were most damaged,idea was they will bounce harder. Entries were posted live on Twitter.
Here is how they played out.
1. Triple Tap low hold.
2.Breaks out down rend line and back over 9/20 EMA and vwap.Long at 36 with stop below 35.80.
3.Quick test of 9EMA hold gave another entry.
4.End of the day flag break for another run.
20c risk and a gain of 4.60 not bad!
1. Stayed rather strong since Monday’s bounce and higher low.
2.Breaks out down rend line and back over 9/20 EMA and vwap. Long at 26.85 with stop 26.30.
3.Open range (ORB) breakout.
4.End of the day flag break for another run.
.55c risk over $4 gain!
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Trade Review and Market thoughts.
Huge relief rally after SPY managed to hold weekly 200 MA.
The bounce was due after 8 down days and multiple indicators was showing extreme over sold conditions.
Daily charts showing 8 EMA resistance coming up. After 5% run up in one day things get trickier now. Market can easily have a multi day bounce given extreme oversold conditions.It could even test that 260 level but there is no reason to think yet , we have seen the bottom and it is a start of another up trend. Bear market rallies tend to be violent and no exception here. Follow through action in coming days or failed bounces will provide us with more clues. Too much technical damages were done to charts and it will take months to heal. Meanwhile , keeping an open mind and trade the price action.
We played the bounce today with small cap etf, TNA and biotech etf LABU. Since they were most damaged,idea was they will bounce harder. Entries were posted live on Twitter.
Here is how they played out.
1. Triple Tap low hold.
2.Breaks out down rend line and back over 9/20 EMA and vwap.Long at 36 with stop below 35.80.
3.Quick test of 9EMA hold gave another entry.
4.End of the day flag break for another run.
20c risk and a gain of 4.60 not bad!
1. Stayed rather strong since Monday’s bounce and higher low.
2.Breaks out down rend line and back over 9/20 EMA and vwap. Long at 26.85 with stop 26.30.
3.Open range (ORB) breakout.
4.End of the day flag break for another run.
.55c risk over $4 gain!
Follow me on Twitter for real time trading setups@szaman and on StockTwits @szaman
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