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Massive Resistance: 8000

Posted by Satuki On March - 24 - 2009

I think we have hit a massive resistance. As we can see from the Dow’s Daily Chart, the last trading range was very thick and a lot of people went long thinking that was a bottom are eager to get out.  So there will be massive selling in that range. It will take some time for the market to wear out those trapped bulls.  Once some of them are out, we might see upward moves with the help of some good news.

Click the pictures to have a better view

 

 

I am still bearish. That is why I have FAZ.  Now I am up 10% in FAZ again. So I will move my stop to break-even. My target is 30%.  I think 30% is very conservative here.

 

 

Where do you think FAZ will stand 3 days from now?


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  • Jeff

    Hi Satuki,

    I will be very conservative today. Yesterday’s late sell-off could be interpreted 2 ways: legs to this rally starting to wobble OR healthy consolidation for a further move up. I think today will be pivotal. If this “rally” truly is one and not a bounce, it should have legs that allow it to move up WITHOUT any positive economic news or without anyone from the FED/Treasury talking about a program.

    FAZ will open lower today and I will probably wait until later today before I decide which way to go.

    • http://www.momdaytrader.com/blog/ Satuki (Trader Mom)

      We actually will not know if it is a healthy consolidation until after another meaningful rally from this level. That would be too late if we wait until then. I will not swing long at this level. My TA says “Short”

      • Staud

        Satuki,

        Thanks for the posts on your site/blog. I have been following them, albeit briefly. But the question I have is: if your TA said “Short”, why did you go long on $BGU and $BAC?

        • http://www.momdaytrader.com/blog/ Satuki (Trader Mom)

          Those were day trades. I do not care about the general direction for day trading. But you brought up something I have always wanted to do. My portfolio can be confusing sometimes. l will ask my husband to work on the portfolio so we will have a field to indicate “day trading” or “swing trading” for each position. Thanks.

          • Jeff

            I think if you look at the dates, you can easily determine if it was a day trade or not.

  • Jeff

    Hi Satuki,

    I will be very conservative today. Yesterday’s late sell-off could be interpreted 2 ways: legs to this rally starting to wobble OR healthy consolidation for a further move up. I think today will be pivotal. If this “rally” truly is one and not a bounce, it should have legs that allow it to move up WITHOUT any positive economic news or without anyone from the FED/Treasury talking about a program.

    FAZ will open lower today and I will probably wait until later today before I decide which way to go.

    • http://www.momdaytrader.com Trader Mom

      We actually will not know if it is a healthy consolidation until after another meaningful rally from this level. That would be too late if we wait until then. I will not swing long at this level. My TA says “Short”

      • Staud

        Satuki,

        Thanks for the posts on your site/blog. I have been following them, albeit briefly. But the question I have is: if your TA said “Short”, why did you go long on $BGU and $BAC?

        • http://www.momdaytrader.com Trader Mom

          Those were day trades. I do not care about the general direction for day trading. But you brought up something I have always wanted to do. My portfolio can be confusing sometimes. l will ask my husband to work on the portfolio so we will have a field to indicate “day trading” or “swing trading” for each position. Thanks.

          • Jeff

            I think if you look at the dates, you can easily determine if it was a day trade or not.

  • Jeff

    Actually, when I said healthy consolidation I meant it on a short term basis. If the market had bounced well from that late sell off yesterday (which at 230EDT it isn’t), then I would hold off on any swing trade either way until after the quarter with my theory that the market will trade in a narrow range until the end of the month. I would have gone strictly day trading if that happened. If the market stays how it is right now, I will be more aggressive with my short swings.

    Awesome trade on BAC earlier today.

    Jumped into FAZ at $18.50 so it’s looking good now.

    Realities of how bad the financial sector is coming into play again after the false euphoria on Monday.

    • http://www.momdaytrader.com/blog/ Satuki (Trader Mom)

      LOL Jeff. Good for you. My FAZ died. Portfolio will be updated after the market close.

  • Jeff

    Actually, when I said healthy consolidation I meant it on a short term basis. If the market had bounced well from that late sell off yesterday (which at 230EDT it isn’t), then I would hold off on any swing trade either way until after the quarter with my theory that the market will trade in a narrow range until the end of the month. I would have gone strictly day trading if that happened. If the market stays how it is right now, I will be more aggressive with my short swings.

    Awesome trade on BAC earlier today.

    Jumped into FAZ at $18.50 so it’s looking good now.

    Realities of how bad the financial sector is coming into play again after the false euphoria on Monday.

    • http://www.momdaytrader.com Trader Mom

      LOL Jeff. Good for you. My FAZ died. Portfolio will be updated after the market close.

  • Jeff

    Thanks. Until I feel more comfortable with my strategies given how sensitive the markets are when someone in Washington opens their mouth (if there is such a thing), I need to babysit the charts. Oh well, it’s like working…at least I have no boss. Well, I actually do…if I lose, wife is the boss. If I profit, no boss..LOL

    But I take your insights seriously and they have been a lot of help. Thank you!!

  • Jeff

    Thanks. Until I feel more comfortable with my strategies given how sensitive the markets are when someone in Washington opens their mouth (if there is such a thing), I need to babysit the charts. Oh well, it’s like working…at least I have no boss. Well, I actually do…if I lose, wife is the boss. If I profit, no boss..LOL

    But I take your insights seriously and they have been a lot of help. Thank you!!

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