Intraday Commentary ~ 04/29/2009

4:06pm
Somewhat ambiguous close.. but a close below $875 can lead to more declines, be cautiously bearish. I will have a video out by 7 ish.  

3:25pm
A failure for the bulls to close above 875 will result in a sell off… to the bottom of the channel once again.  

2:34pm
S&P now at very strong resistance, but it seems to be catching momentum… this is very intresting.. especially because today’s volume is nothing to brag about.  Trade will be taken at around 880 on the S&P short. 

2:04pm
GS hits longer term resistance at 126.60$. It is still trading in a ascending wedge formation.  

11:30am
Yeilds did not rally like the stock market did… what will happen at 2 pm?  I am planning to go short on the market yet again at 881, as we hit the middle channel resistance. Does this market really have the legs to break above that? I don’t really think so, but at this point i’m just going to short and cover if it breaks above 882.50. Also, I want to point up that this resistance is ascending so it might be 882$ if it happens late in the day. 

10:42am
I will be gone for a couple of hours, if we rally above double top area, I will cover all my shorts.  It is important to note, that the Dow Jones is close to its highs but the financials aren’t. 

10:11am
Resistance was found at a descending line from the top at 87.60+ from a week ago, to the top that we had last friday. This is where volume started picking up on the SPY, i guess that’s the level to watch right here, around 87$.  

9:56am
For those who were wondering, I took about 30% of my shorts off to lower my risk level. I am still about 40% short on my protfolio, but will take some more off if the double top level is breached.  

9:49am
Dow Jones is trading slightly above the breakout level, volume still not as high as you’d want to see in a breakout, maybe they are waiting for a double top level at 8122. 

9:41am
Hitting up against Dow Jones resistance, will we get that breakout? 8107 is the resistance right now to be exact. The XLF might be strong enough to push this market higher. 

8:36am
Wow… i was close with my GDP prediction.. We hit the resistance on the futures and fell back down a little. 

12:00am
Hey guys, the futures are now up around 0.5% for all indexes but this does not change my view until the Dow Jones at 8100 ish is broken. A break of that on strong volume would mean that we are going higher and that we have only formed a bull flag in the last few days. These futures numbers, however, are prior to a GDP reading that will be given at 8.30 am. For those of you who were wondering what I was thinking the GDP numbers would be;  the market forecasts a -4.7%, and I believe we’ll see -5.9%, but inventories will be somewhat depleted and that might be some encouraging signs for the economy in general.

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.