Itsa Friday Wrap

A weakish day but not too weak. More or less as expected for a change. I didn't do very much but I did take an opportunity trade which was right after GM took its plunge and I saw that it appeared to overshoot and made a "buy me" formation. A little while later it followed with a "sell me" formation and I made a quick 80 cents.



This is an opportunity trade in that I happened to read the headline where Kerkorian's man quit the board and then looked at the chart at the right time in the right venue (4 minute bars). I wasn't considering a trade but the set-up (a piercing arrow hammer at 30 past) was so sweet I had to get on board.

It is possible that the current run will continue. The up/down ratio dropped all the way to 35% and the new 20 day highs pulled way back to 582 from 1234. Of course the new lows went nowhere and that might be a good thing. It might suggest a certain amount of internal strength to the market. The VIX remains neutral. The three sisters all finished the day off their lows - all of them starting their recovery right after noon. It appears to me that the volume in the afternoon was just as strong as in the the morning so yes I'd have to say that a recovery was in process.

Now the first week in October generally is a down or sideways week and this was anything but so I think (emphasis think) the market as a whole could continue its upward trajectory.

The magic coin is 18 and 5 having called Friday a bull which it was since every major index finished up and white. Next time ... heads - bull again.

I'll be back later this weekend with another post about Goldman Sachs and how it might be considered a proxy for the market as a whole.