Tuesday, October 19, 2010
Watch for Short Covering into the Close
Since we made new lows this afternoon on heavy selling, we then went on to make two new one-tick lows. This usually happens in an effort to shake out the weak longs. If we don't go on to make new lows below 1157, watch out for a short covering rally into the close. When I say watch out for it, I mean look to take advantage of it by getting a good entry long.
Subscribe to:
Post Comments (Atom)
Even though we made new lows, there is still a chance for short covering rally into the close. Watch around 20 minutes before the close to see if support holds. Then look to take a risk getting long if we look strong and back above 1157.25
ReplyDeleteIf you are long, do not defend your position. I did not get long yet, not really liking the action, tough to get much insight here as no serious buying has come in...
ReplyDeleteWell, we did get some short covering into the close, if you managed to get long at 1157-1158, you had the chance to make 5 or 6 points, a nice trade.
ReplyDeleteMarket overall is still weak. There was not a lot of buying or short covering into the close. I expected there to be more. ES closed right at key support, so we could go either way from here. If there had been more buying at the close, I would have been confident in a long position here. However, to get a better idea, we'll have to see how the overnight session trades and how we open tomorrow morning
ReplyDelete