Tag Archives: Volume

Will we see a short-term correction on S&P 500?

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The blue candle showed on Friday when the job market report didn’t make the grade. The sell-off occured in the first a few minutes and last hour. Before the last hour plunge, it actually recovered most of the loss.

The volume (judging from SPY chart) was more than 50% higher than average.

It was rumored that a big firm sold a lots of puts to their customers and had to sell ES to hedge their position, thus the big plunge in the last hour.

Since the uptrend line is still intact, Monday’s open shall give us some indication of where the market will go. Currently, it’s pretty extended. It would make sense if it goes sideway for a few days or a week to ease up the over bought condition. I would not be a buyer at this time. I will look for weakness to short it.

INDU held above 10K

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INDU closed at 10042.16. S&P 500 closed at 1074.14 and NASDAQ closed at 1949. It looks like more money is moving into the big caps.

Started experimenting YM, the e-mini Dow Jones index future. It trades in much lower volume compared to ES. The result has been good so far using the same setup for ES. Actually, the same setup (trend following plus price action, resistence and support, plus Bollinger Band with Slow Stochastic is being used in stocks, stock options, and futures.

ES

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All indexes were up today. However, the volume was average. Tonight, I’m setting a short setup @1059.25 with target @1058.25 and stop @1061 above today’s high. Let’s see how it works later.

Reversals

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Triggered by OPEC’s cut in oil production, all indexes dropped a lot. Although they were above or at support levels, the increased volume was troublesome.

EBAY hit the target @56 though the intraday high was 57.2. Left a lot of money on the table due to lack of time on watching the market closely.

Long: QQQ Oct 32 Puts, SNP (target 28 and trail 2), SUNW (trail 0.3) and MSFT SSF (target 31.5 and stop 28).

August is over

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Slowly moving August is over. After this comming Labor Day week, trading volume should be picking up as traders return from their summer vacations. NASDAQ has reached new high and INDU and SPX are approaching its recent high respectively. All markets have done some base building, we will find out wheither or not they will break out or go down. Short term wise, it looks the market will move up a little. Short: QQQ Oct 32 Put (it’s not working obviously after QQQ’s big run up). Long: HNP (I have been waiting for opportunity to own some HNP shares), SUNW, SOHU and MSFT (SSF).