Monday, December 21, 2009

S&P Tests The Top Of Its Trading Range



Stocks were up today across the board with the S&P testing the top of its trading range. If you look closely at the above 60 min chart of the S&P you will notice a series of higher lows. Usually higher lows are followed by higher highs which means expect the S&P to break through the top of its range.

Historically the days surrounding the Christmas holiday leading into the 2nd trading day of January have been bullish. The S&P has increased an average of 1.5 percent during the seven trading days that start with Christmas Eve and end with the first two days in January since 1950.

As you know I've been holding shorts in the stock market but have been scaling out of these positions (at a loss) ever so slowly, maybe too slow. The big disappointment for me was seeing the dollar rally over the past 3 weeks which I thought would have put pressure on stocks but that simply did not happen. Right now I have a mixed position, I'm short a few financials that have been weak and long several stocks that have been holding up well. This was not an easy month of trading and I think the above sideways chart says it all!

3 comments:

frank said...

Kudos to you for taking your losses and moving on.

Fx Trend Trading said...

nice job! Kevin. Is always good to be nimble as a trader.

Unknown said...

yeah, good going man. thought that stocks will come down with an expected dollar rally, as they did for the last god knows how many months. didnt happen this time... yet :D

Money-Making Ideas

DISCLAIMER

This site may include market analysis. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Trading and investing involves high levels of risk. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.
 
Google
Technorati Profile Finance Blogs - Blog Top Sites