Intraday Commentary ~ 02/02/2010

3:42pm
Even though the SPY 110.40 level is holding relatively well, in order to jump on the short wagon I’d like to see the daily candle finish at least closer to a DOJI candle and not near its highs. As for now I say, keep those trailing stops long, if you want to get short make sure you got a stop no higher than 110.65.

2:50pm
Well 110.40 so far is the top of the day… lets see if we start breaking some support levels now… keep tracking GS wedge, broke on the 10 minute timescale.

12:38pm
GS 60 minute shows that we are in a wedge formation in the last 2 days of rally. GS is now actually weaker than the overall market, and a break of the support of the wedge will be the first signs to go short. 110 40 on the SPY was my target for this rally, which coincides with 38.2% retrace of the move lower. Here’s the GS 60 min:

11:40am
I believe this might be the place to take your gold longs out..we had a nice 4-5% rally…. 110.40 was my target. You can see the triangle resistance:

1:19am
Futures are down slightly, but i’m not sure if the upside is done yet.. I think there might still be up to another 1% higher from here (over 1-3 days). But any break of 107.30 on the SPY will be very very bearish.

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.