Intraday Commentary ~ 03/31/2009

3:41pm
I should have a video up by 5:15-5:30 pm, I g2g to a meeting. Rememeber.. TAKE PROFITS EVERY ONCE IN A WHILE! 

3:30pm
I smell shorters abound. My favorite pattern H&S on the 1 minute SPY. Volume picking up.

3:17pm
80.50 $ is a 38.2% retracement of the SPY’s last move higher since 12:25pm that should form the first support.  BY THE WAY, I do not plan on holding all these positions overnight if they become profitable, I will take some off, just to be cautious. 

3:14pm
UPDATE: I am now 73% SHORT the market, I have puts on GS, XLF  I am long FAZ and SDS. My break even point is just slightly below 800 on the S&P.  I have another 27% to dedicate to shorts, depending on how this market goes. I would like to see a move below 80.00 to add more to my shorts. 
 

1:27pm
I’m heading out for a couple of hours, I do my targets on there already. I’m ready to go short if we ever do reach 805, if we don’t i’ll look for solid bear flags to go short on.  

1:03pm
Double top target reached, rememeber, 805 is the key place to go short.  

12:46pm
Potential bull flag is forming on the 1 minute SPY, it’s pretty easy to see, that will also complete an inverse head and shoulders, that should take us back up to a double top region 50% retracement.  

12:35pm
TRADE: Faz is forming a potential bull flag as it is hitting around the 38.2% retracement of yesterdays move higher (it’s underneath it, and that level has become resistance, but it’s looking like it wants to break it). This level is at 22.44$. I took another 5% Entry point.  This will be my last trade for the day, unless we revisit 805. 

12:01pm
TRADE: 1 % in GS PO  (April 75$ PUTS). I don’t believe we’re going down that low, but volatility should drive those up the furthest.   GS is trading below the $106 resistance. The XLF has only reached 38.2% retracement of yesterdays move (since friday), showing weakness compared to the SPY that already practically reached the 50%. 

11:35am
TRADE: 10% SDS, 10% FAZ, leaving me with another 65% in cash, to enter at the ultimate level of 805, if we ever reach.  

11:31am
SPY is starting to show a little more weakness, as it is breaking the support that has held it for today’s trade. We’ll have to see if this support is more significant, as it gets retested as resistance.
spybreaking 

11:16am
Bulls still have some control, get ready to short around 80.00$ for  50% retracement. I’ll add 10% SDS and 10% FAZ.  805 Is the ultimate resistance, it’s a prior resistance + 61.8% retracement. 

10:13am
This is a 5 minute on the SPY so that you could see what I see:
march3109 

10:06am
10 am reversal forming some support in the market at 79.15$, I was a little early to the punch, we are now battling it out on the 38.2% retracement at 79.56, I will wait till 79.90 to add my second position which will include both FAZ and SDS.  

9:51am
TRADE: another 10% of my portfolio has been added to SDS at 79.30$, I have a lot more room to add higher.  

9:42am
I’m waiting for a bounce on a potential support level (maybe 79.15 to go short).  

9:03am
Market is up about 1%, The best thing to do here, is wait for it to hit the 50% retracement at 79.90, or go in short if a bear flag forms during the day.  

12:00am
Hey guys,
Today we will be looking at possible retracements as we move higher (futures are up close to 0.8%). I would like us to open below 79.15-79.44$ as those levels will be relatively strong resistance. 79.15$ is the 61.8% retracement of today’s move lower from the open, and the 79.44$ level is the 38.2% retracement from the move lower (on friday). Both look like good resistance levels, I will add to my shorts as we move upward. I will leave myself with 20% cash by the time we hit the 61.8% retracement  of friday-today’s total  move (which I  doubt we’ll get to but just in case) @ $806 ish.

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.