Monday, July 24, 2006


Strong day weak finish. If you've followed along for awhile you know that I consider a weak last hour to be a negative factor for the following day. We also have the very real fact that the SPX is pushing right up against resistance again at 1260. Basically the SPX took out the losses from Thursday and Friday as did the Dow.

The Q's however did not recover all of the Thursday/Friday loss. But all indices ended the day in an upthrust configuration which most likely will carry into tomorrow morning and then collapse through the day. If the end today had been stronger I think this rally might have a chance. VIX is at .08 off its 10-day MA and despite some people's opinion the science is clear - this means the market is once more poised to drop. The other factor is the Up/Down ratio which is 69%. Last week a similar reading after a similar up day resulted in two down days in a row.

I dumpted XLE (too early) and BGO (also too early) this morning. Dropped EXPE because in the face of an overwhelming upward momentum it went nowhere. Bought and sold WERN for the same reason. Held INTC and bought EZM both early and late. I bought PXE (an energy ETF) into the close in case the wild times continue in the Arab world.

I plan to take three days off from trading because I'm getting a little stale. So even though I will continue to post I just won't have any trades.

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