Intraday Commentary ~ 2/10/09

3:59pm
As we predicted, the market has started taking a turn for the worse. This is exactly what i was talking about on friday, I do expect this to happen. We might get a possible fibonacci retracement bounce, but a continuation of this until options expiration is very possible as well. This means, I still believe we are in wave 5, and (subwave 3), which should be the most agressive and long wave downards.

3:02pm
We just hit the slowly ascending support that we hit 3 days ago, a nice bounce should be in the works, but that will only be temporary.

10:47am
Nice bear flag formation, this maybe a nice short soon.

10:16am
We are testing, the ascending support of last week. Breaking it will allow more bears to pile in.

12:35am
Today’s possible double top formation at 87.70$, could mean the end of the updays, and the start of the downdays. I feel more secure placing short positions, now that the stimulus has been finalized. While more potential bailout plans will be on the table, they might take some time to pass through bureaucracy, and this gives bulls less of a catalyst. The bears should pile in very soon. I like the potential of a long term short, with a stop at the double top area.

About FocalEquity

Sun Tze is one of the founders of FocalEquity.com. After going through multiple transitions, Tze, Charlie Cheng and their new team are bringing new changes and features to the new FocalEquity.com in 2011. Tze is specialized in financial modeling and has a masters degree in Finance.