Tuesday, April 12, 2011

4/12 Daily Commentary

The stock market came all the way down to the bottom of the well before bottoming.  DJI 12,225 is my stop point for all stock longs.  Whereas the DJI held relative strength the past 7 sessions today it gave it back.  SPX declined to and closed above it's 54-day M/A.
I added 2% SSO near the low today and went long 1% NQ futures last night.  The lows need to hold to stay in.  NQ futures below 2282 gets me out of the NQ position. A rally above 2301.75 gets me 2% in.
DJI low was 12,234 vs. 12,227 the outer envelope of the critical M/A.  In the futures a decline below 12150 will indicate that the critical M/A will probably break in the day session.  This would imply that I1 forecasted rally will not materialize.  However, holding here means that a 5 day rally into next Tuesday is in the cards.
I'm making it short tonight since I'll be monitoring futures.

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