Both the DJZ and SPZ stock indexes rallied back after sharply lower moves. At one point the Dow Futures were close to 150 points lower but displayed a nice 100 point comeback to end the day lower but not nearly as low as it had looked.
ON the Charts, there is support in the DJZ at 10,111, 10,011 and 9912, if the bears can sink their teeth into this rally and really give the bulls some pain.
In the SPZ, we have a Nov 16 high at 1112.25, and a double bottom on the daily charts at 1026 on Nov 2 and Nov 3. Looking at that move on the charts, support should be at 1078.75, 1069.25 and 1059.00.
If we really start to rock to the down side, keep those retracements on a piece of paper. They are usually good buys the first or second time and the third test usually results in the support either holding or being nullified by further retracement lower.
In the Grains, the Market continues to digest large fund inflows in to the grains, most notably the Soybean contract. We had a wild close today, with a ten cent break from 48 to 38 in about 45 seconds, followed by a rally back up to the 48 level 20 seconds later.
The last 2 minutes and the first two minutes are times where it is really a coin flip.
I generally don’t like to trade at those times for the simple reason that it is impossible to be faster than a computer. Its better to wait 2 minutes in the morning after the opening to see what’s up. Trust me, there will be plenty of day left to catch your moves and make your money.
Ditto on the close.. If you had all day to trade, the general feeling I have is that nothing good can come from the close. Either you add another incremental profit to your day, if you are already up, or, in most cases you end up risking a whack from positioning the wrong way, costing you a chunk of your day, for no potential reward. At the very best, the whipsaw action, over time, will be a push for your account.
As far as I am concerned the Openings and the Closes are a coin flip at best. You are better off watching, and then being pro-active with what is discernible during the day, when there is a better flow.
Finally, the crude oil and the metals finished mixed on the day. Crude oil is still focused on the move from the Sep 25th low at 6555 up to the Oc 21 High at 8199. Support is at 75.68, 73.73 and 71.86.
Gold is breathing and digesting its move from the Oct 29th low at 1026.90 up to the Nov 18th high at 1,153.40. Support in the Gold is at 1,105.30… 1,090.00 and 1,074.74.
Silver as well had a nice move from the Oct 29th low at 16.12 up to the Nov 18th high at 18.8550…
Support on a correction will be at 17.8150, 17.49 and 17.1650.
All in all, we are going to see thin and choppy trade as we head into the Holidays.
People will be leaving early if they are up money, so they can go to early lunches, or catch the last nice day of weather for some golf. A lot of individuals are closing their books or getting ready to close their books. So the trade will be thinner and choppier, if that is indeed possible. Its been thin and choppy for the last 9 months it seems.
Good Trading
