Wednesday, January 21, 2009

1/20+/- CIT after Market free fall on the Obama Inauguration

Markets sold off 5-6% with RBS excuse to exploit quick short profit during the OE week. We often see higher volatility during OE week as the higher volatility provides higher profit opportunity with higher vega.

After markets selling off, markets closed noted pivotal supports: DOW 8000, SPX 817, Nasdaq 1455, and Qs 28. Today is the first day closing below the pivotal supports and a confirmation of a continuation to downside is yet to be seen as the market action could be seen a false break if markets trade up from the LOD yesterday with inv H&S formations. Markets are bouncing up with good IBM earning report in AH. Intraday/Daily price actions are showing moderate +D with the 1/20 sharp sell-off. If we see sustained positive day going into AAPL/GOOG/MSFT earning reports with positive reaction after the earning reports, we have a hope to upside as we are in a pivotal market turn as 1/20 +/-. God bless, 1Best

No comments:

Post a Comment