Morning Call: Open Sold
October 30, 2008 11:58 AM
Well, I said last night that traders have a firm number to short the market now, yesterdays high. Where did we open? Up huge, just under yesterday’s high. It was a suckers move. The open was sold and down she goes. Only a 250 plus drop from the open, but still there was no reason to be long that open as I gave people the number last night. The key is probably yesterday’s low to get more downside here. We need a reversal to be long this today and even that is most likely a scalp.
Staying up here is important however. Key sma’s are slowly catching up to the huge move higher. Those will likely be support to the downside soon and give traders something as a target for any weakness. They are about 8700 now and will be higher before day’s end.
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10 Responses to “Morning Call: Open Sold”
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The gap higher has almost filled. I still believe that yesterday’s low is somewhat important. If we get below that we will likely see some more downside, but not sure… we have no firm intraday low, that I know
A little surprised we are not seeing a bit more weakness…but yesterdays low has not cleared…there is no low from yesterday that is valid, but it is important for future days I believe…
It also appears that if we are going to see significant weaknesswe will likely see it late in the day… this support appears to be sma related nothing more
this also appears to be a longer timeframe sma support issue…as mentioned before… a key sma is coming… it is 8800 on the Dow, was 8700 earlier… and its climbing the longer we stay up here… therefore if we clear yesterdays low, then 8800 area needs to reverse any selling
The market is near a break point, it either HAS to keep moving higher and take out the highs and yesterdays high reasonably soon or it will likely make a new low
Odds favor a new low as i see things… we have zero intraday points to be long this short covering nonsense
It appears that if we can break down below 9000 here will should immediately test yesterdays low… if we cannot reverse there, then I think 8800 will be seen
There was a 50 point pop once 9145 cleared… the direction is still very much in doubt into the close….this has to be frustrating traders…. this is a complete house of hards to the downside
While this nonsensical house of cards continues to grow - and increasing the downside risk as it is built - if we clear yesterdays high I believe shorts will cover and we should see a pretty big spike most likely… this chart is not good… once we get bad news there is NOTHING to stop the fall… I do not like unsupported and unwarranted moves like this
going as planned - kinda… we never cleared yesterdays low or we would likely see selling…. what a whipping waiting and waiting for the sma’s… boring