Friday, February 09, 2007

Friday Wrap Up

It's happy hour - time to kick back, tip back, and swap lies down at the old watering hole. It was a cold, cold week in the mid-West and the stock market reacted like an icicle on a Minnesota ice fishing hut - it went down.

The INDU 10 period ATR went under 80 yesterday, which resulted in the decline today. I spoke about that here.

Now since the market dropped through the 21 EMA it is probably done with this dip. But I do wish the dipsters had left it alone and waited till Monday to start buying back. No matter - the damage was done and it looks like enough stress is out of the market now for a good week next week - or at least a couple of days.

The Four for Friday experiment blew out with the market - but if you were following along you couldn't help but notice all four of them starting to hit the offer after 2 P.M. Nothing to write home about but at least they didn't finish on their lows for what that's worth.

Needless to say I didn't participate in any of them and I took my normal two trades and made some serious money. I bought LQDT on the second candle today just because I thought it was going to continue up and it did. I made a buck 30 before I let it go. I also took NSM but lost that to an 11 cent stop loss. That means I net 1.10 after commissions give or take a nickle or so.

Then this afternoon I reacquired LQDT on the idea that it will go up with the market on Monday and I am currently holding another 12 cents profit. So I'm happy. And for being deathly ill this week I did alright for my trading account. I only made two mistakes - I should have sold both CRVL and DHI sooner. Sometimes ego is your worst enemy.

For Monday the up/down ratio is .28% - the last time this ratio was that low the market went down for the next two days and then exploded skyward. The new 20-day high/low ratio is 52% and that is neutral. The VIX remains neutral and I think the way that the majors and the IWM were recovering towards the end of the day suggests that the dip buyers are ready to go on Monday. Only the Q's were red in the last hour of trading and that is probably a good thing.

I'm calling for an up day on Monday.

The coin is calling for heads - also an up day on Monday. We'll see.

Having both called today correctly the score is now Marlyn 10 - 7 and 4 and the coin is 7 - 10 and 4.