Tuesday, October 9, 2007

SDT Nightly Report

Columbus Day Issues

Today was a typical slow trading day, with a mild drift down to support as seen on the 15 minute chart

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&b=5&g=0&id=p27219147362

The Intraday Put Call data shows appropriate upside bias, but some caution among the DOW traders later in the day with a pick up in DOW index put buying. Nothing much to sway any short term trader’s minds.

Basic data showed 1000 more issues down than up and similar data in the up-down volume data.

Technicals are obviously all positive.

The bottom line? We are still long from the April lows. Today was a throw away day.

If the bears can step on the market this week, but support holds, (notably the EMA 55) then the bulls have a good run ahead. If the bulls cannot pull this back much, either in price or time (more than a day or two) we will have successfully climbed out of the “box” and will be seeing higher prices.

Tactic: remain optimistic but realistic. Dips should be bought. Less trading capital should be committed. A swoon towards the EMA 55 should it develop will offer sweet short term reward. If you choose to trade options, remember the calendar.

Questions? Most will be answered at jim@smartdaytrader.com

More details to follow as the Bull accelerates towards its Fall Fun Day.

Jim