Intraday Commentary ~ 2/19/09

4:02pm
Market retests lows.. and actually breaks slightly to new lows, and is quickly saved. This however sets up very badly for tomorrow’s trading, which might give us the old 760$ level on the S&P.  I left my short trades on. 

12:21pm
1 minute breaks 20 SMA.  

12:14pm
20 SMA 1 minute on the SPY forming beautiful resistance everytime it hits. We keep forming bear flags and then breaking down, it’s a very sustainable type of selloff.  XLF breaking to new lows, this could be the start of a huge sell off if volume picks up. Treasury yields maybe bottoming though, it’s important to look at them in the next 30 minutes to see if there will be a bounce. 

12:03pm
Market is now falling to yesterday lows at 78.30-78.60$, expect a possible bounce, this move lower was on relatively low volume. But it wouldn’t surprise me that this volume would increase as we head lower.  

11:06 am
market broke oufward of pennant NOT down

10:58 am
1 minute SPY in pennant formation 

10:35am
Growth in money supply loosens credit a bit.  Helping markets stabalize. Nevertheless, markets can’t seem to hold gains. 

12:05 am
Market is continuing to move to new lows, and broke down the pennant. Again we’re looking for a retest of the october lows, or at least a retest of the close of the 60 minute candles that all seemed to line up at  75.60$. Once that level is reached, you might see a short cover rally. I kept my short overnight.

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.