Market is in sell mode now after seeing a rally in the after hours session. The brief but significant rally was in reaction to news that the ECB loaned banks a combined EUR 489 bln at its 3-year long-term refinancing operation (LTRO). That was well ahead of expectations, which were closer to EUR 300 bln. The positive reaction was quickly reversed and the negative sentiment has continued this morning.
There are two support areas to look for long entries today. The first one is 1222-1223 ES and the second is 1217-1218 ES.
Only considering quick trades or scalps if the ES doesn't trade that low.
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Hi Verde. I still think the rally is not over, but i m not sure. I m looking for 1250 to come on the next shoot up but on the other side there are some indicators who make me think i may be wrong and the decline is already started. Very tricky with all this big gaps an reversal.
ReplyDeleteHowever i had a lot of think to in the last 3 days and i traded a little. Im happy you post regularly again.
Like now it seems like your day support at 1223 has worked out. I hope you are still long from there.
Ric
Note we got a 8+ point move off the 1223 support level (the biggest gain since the open). It is key now that the 1231 level hold as intra-day resistance for the bears to maintain control...
ReplyDeleteRic... I am bullish overall (till the new year at least) But intra-day I continue to be bearish until ES confirms above the 1231 level.
ReplyDelete1222-1223 was my first target. But I like longs better around 1217.
1214 would be a return to the breakout point of the latest rally. That would be the best and safest level to get long.
To clarify... I like longs around 1217. I will be careful defending longs below 1214. A close below 1216 will will be very bearish.
ReplyDeleteit looiks like today we will not see either 1220 or 1217 or 1214. In a situation like now are you going long, because we trade above 1231 for 30 minutes or are you waiting for other signals?
ReplyDeleteThank you for your view and analysis.
I still think this rally has to go to 1250-1255 before the bear take control of the market again.
We will see
Ric
Couldn't respond to you Vis, but that was a time when I began to favor the long side, yes. Actually that last failed move down just after you posted (around 2:34 EST) was really the signal to get long. You could have held that with a stop below 1229.75...
ReplyDeleteThis market will trade without me now until after the Christmas holiday... I don't expect much more than choppy action with a bias to the upside over the remaining days of 2011.
Best from Verde and Happy Holidays........
Best for you and your family from
ReplyDeleteRic
happy holidays too
P.S. I think with " Vis" you meant "Ric"
I did mean you Ric. Tough to keep these three letter abbreviated names straight... all two of them :)
ReplyDeletethx for the well wishes by the way... it was a good end to the year...