Does the DOW break 12,000 this week????????????????????????????? :eek: Also watch SPY, if it does break 135, next support is at 131, after that :eek:
this market is tough, you think its headed up then it out of no where is takes off 20 points in 5 minutes. Then as you think its headed lower it jumps.
The way to trade this market (asuming you are expecting it to move significantly one way or another and that you have an index day trading edge) is to choose your bais long/short and buy calls/puts on your instrument of choice and then day trade the fut against your option position (you want to try and pay for the option with the day trading and once paid for add to your position with a portion of your profits so on and so forth). If you want to add to the fun capture some volatility in the near month options and go long outright back month. The downside is that you have to be right about direction as if the market stays at this level or goes the other way you are likley to have done a lot of work with very little to show for it. And that really sucks.
I think if we close at intraday highs on the DOW that most will buy into the close expecting another run tomorrow, which is what most bulls will be doing.
Again this rally does look strong, but I have seen this plenty of times where the dow rallies and then sells off again, not going long until it drops below 12k, then ill add small amounts of long positions.
Either way is pure speculation. No side has an edge here statistically. Having a bias of where the market is headed over the next three sessions in a hurt market like that is gambling IMO.
agree, I went long yesterday around 1pm, then 2 hours later everything started tanking, that is what hurt my gains in the stock I bought today, could have made an additional 2 points on it but didnt work out. It is gambling sort of.
This market will get hit it again... I can almost guarantee it. The odds of having it retest the highs without another pullback is in the vicinity of 15%. Im looking around the 1412-1414 area on the ES at this point where the next wave of selling begins. It could be as early as 1400-1402.