Trading on the Edge

Market trend:

Market Watch:

And it all comes down. Indices in general gave up all that they had gained in last two sessions. I am glad I stuck to my rules of no entries when the market is not short term oversold. We would have triggered some entries yesterday only to be closed today with the trailing stops. Maybe they would have given some gains but in general would not have had any swings. The indices have come to oversold conditions in one day. That’s quite a drop. Although they are oversold, I will wait for tomorrow’s action to initiate any new long entries. All industries took a big hit today

SPX: I would say that the broader market is showing signs of getting into a trading range between 1410 and 1430 levels. Today’s long solid red candle doesn’t portend well for the bulls. Next few trading days will tell the story. If it takes out the recent swing lows, then it will make the case for trading range but if it bounces from here then maybe we have a chance to redeem the up-trend.

COMPQ: Techs are back in their trading range. All I have to say is stay away from anything technology related.

DOW: DOW is still not in any danger of losing its trend unless it really goes down in the next few trading sessions.

Industry Watch:

Industries in play: None

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