What do you get when the Fed bails out two of the biggest financials in America? The Answer...is inside...
Market Numbers @ Close:
DOW: +289.78 to 11,510.74
SPY: +25.48 to 1,267.79
NASDAQ: +13.88 to 8,168.62
RUSSEL2000: +14.01 to 732.86
S&P/TSX: -181.59 to 12,634.83
VIX -0.25
Internals:
NYSE BREATH: 1.5:1+
NYSE TRIN: 1.15
NASDAQ BREATH: 1.1:1-
NASDAQ TRIN: 1.63
NYSE AD: 900 up
NQ AD: 600 down
Core Sector List: 11/5 to the bulls
Today's Pivot Points:
SPY 123.15/125.65
DIA 111.20/113.20
QQQQ 43.10/43.90
IWM 70.95/72.25
YM 11070/11300
NQ 1738/1795
ER 710/725
ES 1223-S1 1252-R1 1234.25-PP
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Chart of ES Futures:
Over the weekend the news hit the proverbial fan, that the big bad Fed is bailing out troubled financial giants Freedie Mac & Fannie Mae. With big news like this coming in over the weekend one could assume that as soon as the futures got going, that they would be going, and they did not disappoint. As soon as the ES futures resumed trading Monday they ripped up past the R2 resistance (1262) opening near R3 (1280) Monday morning. With the news that came out not being the best type of news, we watched the market closely to see signs of weakness for a gap fill. It didn't take long after the opening bell to see those signs of weakness. The ES couldn't hold its opening high and quickly fell back down to R2 (1262), breaking through it during the early lunchtime sessions. The first point of resistance (R1) showed to be the floor intraday action, with the ES cracking it briefly, but formed a double bottom at the lows; rallying off these lows, closing near the highs of the day @ 1269 with solid volume (on the ES Futures).
Internals Chart:
The internals spoke the real story behind today's action. The NYSE & NASDAQ breath both opened with positive signs that tapered off as the market dropped off its highs. After the lunchtime laggard session the breaths continued to go higher ripping up with the late day rally. The NYSE TRIN was a story on its own, fading down slowly all day after opening at ridiculous highs due to the weekend news, closing @ 1.25; while the NASDAQ Trin looked similar to the NASDAQ Breath, chopping around closing @ 1.63 . The NYSE and NASDAQ breaths told similar stories from opposite sides of the tape with the NYSE Breath closing near its highs and the NASDAQ Breath closing near the negative highs.
Stocks in Scope:
ENER / WYNN / ESRX / FRED / SLB
Food 4 Thought to Use with Stocks:
Today i wanna spotlight something i received from the ever growing Shadow trader team. I feel they have helped me a lot with my trading so I'm going to feature their newest addition to their learning package - The 10 Laws of Day trading by Peter Reznicek (Shadowtrader Chief Equity Strategist). This FREE e-book offers a clean set of 'laws/rules' to live by for successful day trading. Whether new to the game or just looking to clean up your routine, this E-book will defiantly help with some pointers...Enjoy!!
EXTRA:
CORE SECTOR LIST: Every issue I list and usually speak about the core sector list, and anyone who has listened to Think or Swims Shadow trader knows that he also speaks on the core sector list. But I myself as well as other traders have pondered is there a way to get live #'s and info on this core list? Well Thanks to the Shadow trader glossary you can make a watch list designed for that.
Exurpt from Shadow Trader Glossary:
Core Sector List Although Shadow Trader analyzes many different sectors and may call trades from any of them, there are 16 sectors which are watched more closely and reported on often throughout the trading day. On any day when one or more of these sectors is moving strongly in either direction, there will more than likely be trade calls for stocks from within these sectors. The core list is as follows: Banking, Biotech, Broker-Dealer, HealthCare, Pharmaceuticals, Gold, Homebuilders, Insurance, Internet, Oils, Oil Services, Retail, Semiconductor, Software, Transports, and Utilities. The tickers on the thinkorswim platform are: BKX, BTK, XBD, $HCX, DRG, GOX, $DJUSHB, IUX, $DJUSNS, XOI, OSX, RLX, SOX, $DJUSSW, $DJUSIT (or $TRAN), UTY.
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Important Disclaimer! This website is for entertainment purposes only. Equities, Futures, Options, and Currency Trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Absolutely do not trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell equities, futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this website. The past performance of any trading system or methodology is not necessarily indicative of future results. Absolutely consult your Registered Financial Adviser and your Risk Trading Plan before ever investing or trading any financial instrument!
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