A bullish day, as no doubt you readers would agree. But not good enough to say that all is well and good and up we go. Let's see why.
Firstly, the volatility is back! Which I am glad about as that means more trading opportunities. But the market is still to recover completely from the down days of last week. 1210 is the important level on S&P and I would recommend keeping a close eye on it if we do have a crack at it tomorrow. Also, the volume pattern for the last few days doesn't look very encouraging for the bulls with there being greater volume on the down days. This is worth keeping an eye on too as with volatility back into the picture, volume might have a greater role to play. And lastly, lot of momentum stocks look "damaged" from the battles of last week. All, this would make me cautious here until we make new highs. Some low volume consolidation wouldn't be too bad too to give MA(50) a chance to creep up and provide extra support at 1180 levels.
As the regular readers of this blog know, I am trying to take some time off trading. But today, I just couldn't help but take a position in NR. I was confident about this one and the opportunity just seemed too good to miss. This was a play I had posted here last week and in fact, posted about on twitter in the per market just today. Congrats to all those who played it! I got in at 7 and took partial profits at 7.30 and still own more than half my position heading into tomorrow. I think it looks good to run some more.
Take care and good luck tomorrow.