Monday, May 18, 2009

05/18/09 Market Recap

From open to close the bulls were in control and took no prisoners, the ES teased the bears by making new lows overnight only to reverse into the open and not look back. All the sectors were up today showing wide spread participation, the big winners were financials while health care lagged behind barely ending in the green. Throughout the day we saw high TICK readings consistently above +800 while we never saw any TICK readings below -800. My line in the sand for the short term bearsish scenario is 910 on the SPX which would be a break of the 61.8% retracement level from move down from 930-875.

The strength the Nasdaq showed on friday was a warning sign as we broke out of the down channel we were in. The ES also broke out of its down channel and went right past two levels of resistance at 895 and 905.

At the open I got stopped out of my short positions in ODP and DRQ and even though I was weighted towards the short side I still had a pretty good day with a 2% gain in my account. All my longs were up( LNN in particular) I also sold my position in ARE(which I purchased on friday) for a quick 9% gain, and some how half my short positions ended up closing down for the day and my long position in oil via USO also did well. I am still tilted to the short side until we see a break of 910 in the SPX.

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