Wednesday, May 20, 2009

05/20/09 Market Recap

Wow is all I can say about today, truly a wip-saw from hell. Market took out the shorts in the morning then took out the longs in the afternoon. The TICK was very volatile as it moved between +1200 and -1200, we also saw the VIX get back to pre-financial crisis levels. Sectors were relatively mixed as financials and technology were down the most -2.4%, and at the other end materials and consumer staples were up around +.7%. The SPX got with in 5 handles of its previous high of 930 from which it sold off hard closing at 903. The SPX looks like it is making another attempt at a double top, the bulls are still in control but the market looked very weak going into the close. The ES is currently at the bottom of the channel, the bulls need to see this level hold and get a bounce where as the bears are looking for a break of the channel below the 900 level (895 will be the first level of support). You could see evidence for the bearish scenario as we have made a small pattern of lower highs and lower lows, but the main trend remains up. Also today in the daily chart of the ES we saw a text book head and shoulders pattern which got triggered.

Nasdaq once again showed more strength, will look to see if can hold the 1385 level or not.

Potential short, AOC:

High risk long, CMZ:

High risk long, URRE:

My short positions got destroyed in the morning and I got stopped out of multiple positions on the run up but experienced really good gains in my longs...then the market decided to crash down. My gains didn't take as big of a hit as I thought but it was still pretty bad, my LEA and PCX longs were the standouts, if it wasn't for these two I would have ended the day in the red. My long position in oil did well again, I sold half my position in USO as it has now been up three days in a row since I purchased it.

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