Monday, March 7, 2011

3/7 pre-open

I bought 4% TLT at 90.02 just now and 1% NQ futures at 2349 overnight.   I exited all positions Friday and postulated that the stock market has completed a triangle that formed over the past 2 weeks.  (See the Weekly Commentary).  After a 5 up on the futures minute charts the stock market retraced almost all of the first wave, where I bought the NQ.  Here is a 15 minute NQ showing it breaking M/As to the upside later.

The SP futures ran up to important resistance, the 30-minute M/A (blue line).  It will only clear this when it exceeds it by .5% on a 30-minute close. 

I bought TLT based on the discussion in the Weekly.  Having long bonds and long stocks should balance, since they are normally negatively correlated.

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