Tuesday, May 5, 2009

05/05/09 Market Recap

Very choppy day in the market today with very mixed TICK readings, the major indexes ended down slightly. The market sectors were also mixed with health care increasing the most(+1.55%) and energy down the most(-1.79%). People really didn't know what to do today and the market was stuck in a range day, although the tone was more on the negative side. The SPX closed above 900 and still looks bullish in the intermediate term, it seems like the 200 dma is acting as a magnet for this market.

Yesterday I said we were at the top of the channel and that we could see some down side, the ES was at 900 and it went down from there to a low of 893 but closed back above 900. Looking at the current chart of the ES the short term outlooks looks bearish and we could see some more downside, we have seen multiple attempts to break that 905 high and failed each time. Wouldn't be surprised if we consolidate to the middle or bottom of the current channel we are in.

I myself had one of my best trading days today, my account was up 6.2% overall, things just worked out well for me, my shorts were down and my longs were up. The main catalysts was my two long positions CAVM and AHD. Specifically AHD, which I posted a chart of in yesterdays post, I said it was forming a nice base and I could see it breaking out from there. It broke out in a big way today and shot up 37% and is currently up 8% after hours. There are a lot of these lottery longs that are out there. Another one is FIG which keeps going up relentlessly day after day, but you have to be careful with these because their time will come and it won't be pretty.

AHD breakout:

CAVM, purchased at the bottom of channel:

Favorite new short, LECO:

Lottery long, ARM:

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