Morning Action - Well Bearish 09/04/08

Thought that there may be a chance for a reversal after 1000 ET, but the market is just too bearish. $TICK momentum on the 5 minute chart turned red at 0945 ET and stayed red. The long term moving average on the 1 minute chart also dipped below zero at 0945 ET and stayed below zero. I did make a profit on a long position, but got out quickly since the action to the upside felt weak. My bigger gain was a short position, of course.

Charles

S&P 500 Review - 09/04/08

Typically, the monthly open is a decent indicator as to whether we have a bullish or bearish month. So far, September is living up to its historical tendency to be a bearish month.

On the 60 minute chart, the 1260 - 1263 area is still holding as support. If the market closes below 1260, look for continued weakness.

Charles

AfterMarket Data - 09/03/08

Charles

Where the $TICK - Price Momentum Indicator Keeps Me Out of Trouble

This is where the $TICK - Price Momentum Indicator has been keeping me out of trouble since I began using it a few months ago.

As the European markets were closing at 1130 ET, the ES Futures was again testing the morning low. It might be tempting to take a long position thinking that the market would jump up again, but the indicator was red, which is indicating a downward momentum. I just about never start a long position while the indicator is red now-a-days. An obvious $TICK - Price divergence is an exception.

Another potential loss not experienced.

Charles

Morning Review - 09/03/08

The market is staying in a narrow range, which is typcial after a wide range day. Bias is slightly to the bullish side as the market is using yesterday's low as support. Notice the higher lows of the $TICK as the ES Futures test the lows.

Charles

PreMarket Perspective - 09/03/08

The S&P 500 Index is sitting on top of a two week support area with the possible completion of the two-day down cycle. Crude is remaining below 112, and the dollar is holding onto its recent strength. Watch market reactions to test of recent bottoms.

The Index is staying in a tight range with the bulls with a slight advantage. Beige Book today at 1400 ET, and various employment data coming out in the next two days with the monthly report Friday morning.

Charles

AfterMarket Data - 09/02/08

Charles