Monday, December 08, 2008

Now EOD 12/08/08

2:15pm: Nice day, as you would expect with a large gap like that, the SPY put on a kind of doji looking candle thingey, It did NOT fill the gap, that's a bad tick on TradeStation that left that long tail. I would NOT want to see a gap down tomorrow, that would not be good, as we could be in danger of an Island reversal, or abandoned baby, the last candle on the Q's 60min chart is not looking to good, you never like to see selling in the last hour of the day, especially today, it would have been nice to see the rally accellerate into the close instead. The RSI is getting a little over sold, but the Stoch still has room to run, on the dailies.
It all depends on tomorrow, if we get some follow through, the next resistance in the Q's looks to be about 32, once we get over today's highs, the SPY looks to be around 96, again, once we get over today's highs.

7:00am: Actually, this is getting pretty interesting, the SPY is gapping right into that high from six days ago, in the red circle, if this holds up it will cause both the RSI and Stoch to jump up into over bought territory, which, of course, don't mean diddly squat, as we can stay over bought for long periods of time. What's really interesting though, is the ES ran straight up into that area, on a five minute time frame, hit it, and has been pulling back for like 25 minutes, sooooooo, what this could be doing, is setting up the pull back in the premarket, which would relieve some of the over bought problems, and may allow for a push higher after the "real" open. We shall see, but it's getting a little more interesting, I definitely don't want to see them testing those prior highs going into the open, that could be baaaaaaaaaddddd (I wish those damn sheep would get out of here).

6:30am: Futures are up 3.38%, DOW is up like 240 points, why you ask?? Easy, it's because of this Dow Chemical slashing workforce by 11%, closing 20 facilities, idling 180 plants , no wait, it's this Tribune Co. considering Chapter 11: WSJ , oh, no, wait, here it is Illinois Tool Works lowers forecast for quarter and year , maybe this is it 3M cuts earnings outlook , well, anyway, you get the gist.

I have to admit, this is probably one of the most hilarious things I've ever seen da Boyz manufacture, hahahahaha, oh god, this is a classic. I guess those 1.3 million people that have been laid off the last three months have nothing better to do, than buy shit from the outfit's that laid them off, hahahahah!!! Or, maybe those outfit's hired them all back over the weekend!!

Anyway, YOU can buy this if you want, this is definitely bullish, we are gapping over pretty much every thing, the HSI gapped like this earlier today, and then went flying up to boot, so it's possible we go up further. However, ME, myself and I are not allowed to buy a 3% gap, my rules will not allow it (Hahahahaha, yeeeeeaaaa, riiiigggghhhttt, LIKE I HAVE RULES!!!), what I will do however, is use this to sell a little more of my UYG, and hope to be able to buy it back at a little lower level. Toni Hansen thinks that because of the size of the gap, and the weak volume leading into today, there will be an excellent chance for a gap fill. I mean, I'm definitely not going to short this thing, I guess my plan will be to wait until after the first half hour to 45 minutes, and hope for a pull back, and see how it reacts.
Good luck out there today.


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