September 2, 2011
Uncategorized
By Geoff Bysshe
The last day of summer trading, a three day weekend and a big jobs report all on the same day. Tomorrow. I'm not going to try to call this one.
Purely by the numbers, all 4 market watch...
1. The Fibs: Have stalled at the 50% retracement from their July highs and the Q's have the distinction of making it back to kiss the 50-day moving average. So as I said yesterday, this would be a logical level to retreat from.
2. 3-Day Pivots: Closed below their 3-day pivot lows, so an OR Breakdown and trade below today's low would be a confirmed 3-day pivot bearish bias in the context of a daily trend that's down.
3. Floor Trader Pivot Stack: Have negative stack.
4. The Prior Day's Range: Closed below the prior day's low.
5. The Phase: Bearish
6 .The 10-20-50 day MA condition: 10-day positive slope just crossing negative sloped 20-day, and both below the negatively sloped 50-day.
Your quiz!!! -- >>>>
Considering EVERYTHING stated above, which is the most compelling piece of information?
Answer: To be discussed in the AM in the Live Trading room. If you can't make it to the trading room then email [email protected] your answer, and the your favorite feature of either the product your are subscribed to (MMM, CSTS, ORSF, DTHS). ? In return I'll give you the answer and the "WHY" which is the most important part of the answer (feel free to include the"why" in your answer if you wish).
All the above considered, here's how I see tomorrow...
1. A big gap beyond the range of the last TWO days could be considered to be traded in either direction.
2. A gap within the TWO day range should be either faded or not traded.
We'll have to see where any gap begins relative to major support or resistance levels. But unless the market really picks a direction, this I not a day I'd expect much follow through because it is a holiday week.