Now is the time to put your trades cap on!

June 23rd, 2009 Posted in Uncategorized

So I been following the S&P for some time now. I actually look at other futures markets as well, in fact 35 different commodities.  But I'm focus at the moment of the S&P.  Some of these ideas can be used not just for futures but also the futures options, SPY options and SPY.  I don't put every single detail in the Blog or the charts but I offer everyone to comment on the ideas, charts, etc. either by Email, comment directly from the blog site, or call me with any questions. I am more then happy to speak, reply, etc to anyone. With that said, today is the start of a two day fed meeting. These days are pretty low volume days leading up to the announcement and minutes.  The dog days of summer and the recession doesn't help either.  but that doesn't mean there are not opportunities.

The last blog I didn't say much because I thought the picture says it all.  It still does. So I updated the chart and I'll make a few comments.

The market is doing everything I thought it would do.  The 900 level is significant because it is psychological and it's a technical pattern. We broke through that level yesterday but more importantly we closed under it.  The market is weak. Yesterday we were oversold and this morning it came back a little currently +250 off the close yesterday.  This little movement in the night session and the time it took it to do it,  has caused the  market to push out of the oversold area still keeping the market weak. I would like to see the market go and retest the 900 level but it doesn't have too.  Another pattern that is forming is a possible Head and shoulder. It is pretty obvious, and I'm sure every trader inthe world is looking at it, so it might take some insight and time and a keen eye to form the RT shoulder,  if it happens.  Also we are now under the 200 day moving average.

As we look at the chart, it is now that we really have to really think of what the market is trying to tell us and we have to put on that traders cap to really take advantage of this market.

Dave Heltmach
Manduca Trading LLC