Wednesday, September 7, 2011

Picture Perfect Set up Yesterday (for short term rally)

After last week's debacle on jumper trade and yesterday's scary open,  I was scared of market both going long and short.  But after some good coffee and good analysis, I regained my footing and sense.
Some of you know that I went long last night with deep in the money SPY calls and today morning I  sold 1/2 position on the Gap open.

Here is the setup I looked at last night..

Tick study started ringing bells 20 mins before close. There was constant ding ding.


SPY was forming very bullish setup on hourly and then daily was forming a hammer pattern that we have talked about so many times now.


This setup made me go long with tight stop below 8 EMA and I was hoping for a gap open which I got.
I am also looking at TLT short setup this morning.

I am long DBA in ETF portfolio . Also holding some long positions in MOS, IP and HD and AMZN. I am short Autodesk will cover today. Also these are all short term trades. I am only 10% invested in IRA and 401K right now. No need to initiate long positions till VIX comes to 25 levels or meets its 150 d SMA which currently is at 21.37. I expect them to meet at 25-26 levels where they have met historically.

Please e-mail me on marketing1977@gmail if you need TICK study for TOS platform.

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