Monday, November 07, 2011

For the second week in a row we are getting some Monday morning weakness, the DOW is down about 58 points. The one thing that strikes me right away is the DOW is trading very very "Technical", as during the over night session Da Boyz tested just about every thing they could, they tested Fridays high after the open yesterday right out of the chute, then came all the way down and tested the low, currently they've moved up to just about exactly the 50% area of the range, and set up a Triple Top, which may lead to weakness into the open. 
Hard to say which way they go after the "real" open, but it obvious that the range is set, and a break either way, "should", lead to further gains or losses. Of course, we may just wallow inside this range, setting up an inside narrow range type bar for the day, with "Turn Around Tuesday" providing the fire works. 

Stock pick for 11/07/2011

Dear traders,
In news market is really hard to predict anything and right now market depends on Greece news and it can be different any hour so I like to remind on that again because risk will remain higher until worries about Europe will calm down. From technical view I like to show you SPY daily chart and possibility what I will follow. That is daily head and shoulder pattern possibility. We can see on the left side left shoulder and then bounce and head. Now on right side after pull back last few days SPY is in upside move what could result with H&S pattern. Red line is 200sma and that si still resistance area and we could see few more choppy upside days, but also negative news can accelerate downside action. For now it is just something on what I will pay attention. If anyone will have any question please feel free to contact me.
Wish you all great trading day

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