Tuesday, May 19, 2009

05/19/09 Market Recap

Fairly mixed day in the market, couldn't pick a direction and we were stuck in a range day and were positive for most of the day but ended with a sell off. A surprise drop in construction and a cautious outlook from retailer Home Depot (HD) caused energy and utility stocks to lose their gains. We saw consistently higher TICK readings above +800 and didn't see any below -800 until the last 30 minutes. Most sectors ended down for the day with financials being down the most -1.95% and on the other end materials were up +1.17%. The SPX broke that key 910(61.8 retracement) level but failed to close above it. I don't see any sort of direction of where the market is going, basically if we make new highs this week it will be bullish and if we break(and close) below 880 will be bearish.

The ES is currently trading slightly below area of support at 905, we are back in the up channel, bears will be looking for a break of 895 and bulls need to see a break of 915.
The NQ is looking more bullish, I won't give more weight to the short side until we see lower lows and lower highs.
I had another strong day, my portfolio is pretty much evenly balanced between shorts and long which is pretty much useless and I agree with that, but recently my shorts have been down and long have been up so I can't complain. I am undecided with the market direction at the moment and until that changes I will be evenly weighted. At the open I got rid on my AFAM and FLIR shorts to even out my portfolio and added LEA and WSTL as longs.

Potential long, cup and handle, PEET:

Current short, DBRN:

Potential long, PCS:

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