Market #'s @ Close:
DOW: -76 to 9,310
S&P: -5 to 998
NASDAQ: -65 to 1,779
RUS2K: -16 to 554
TSX/S&P: +890 to 9,955
VIX: +0.5
Internals:
Core Sector List: 11/5 Bear - weak: software, home, internet
NYSE:
BREADTH: 1/1
TRIN: .75
A/D LINE:
NASDAQ:
BREADTH: 5.1/1
TRIN: 3.03
A/D LINE:
Today on the Marketbeat: Gap Fills and Spills
Today's price action was nothing like yesterdays blow out rally, that saw the market melt upwards in a large fashion. However, today's action was not as bearish as the weeks that have passed, and is still a welcome change to the triple digit losses we saw for what seemed to be forever. Now, this is not to say that the woodshed season is over, but the market seems to have found some bulls out there to catch some bids. As I thought, the market gaped up again today from the strength of yesterdays rally spilling into today's action, as well as all the Treasuries being open today. However that gap was quickly shorted and filled before 11. After that, the market just stalled out and it wasn't until a quick break of the daily pivot point that the market swinged back up closing very close to yesterdays close
Under the hood, Internals painted a beautiful picture for any day trader looking for some intra day plays. The Breadth switched leaders a couple times of the day ending wit the bears up but near parody, however on the NASDAQ breadth, it was more bearish (closing around 5/1 negative). The core sector list came in at 11 to 5 for the bears.
Today Id like to start a new section of my blog for newer students. Its called Starting from Scratch. And what I wanna do is go over ideas that can help a new trader, or give a little reminder for older traders.
Today's idea is how to map pivot points: These lil suckers are perfect for day traders playing the indexes, or swing traders looking for the perfect entry/exit on their trades. Bottom line is they are influenced by price and they are not so much an indicator as they do not lag.
Pivot Point = High + Low + Close(Settlement) /3
R3 = High + 2(Pivot - Low)
R2 = Pivot + (R1 - S1)
R1 = (2*Pivot) - Low
S1 = (2*Pivot) - High
S2 = Pivot - (R1 - S1)
S3 = Low - 2(Hi - Pivot)
Input these figures into Excel, and all you have to do is input the levels, using intra day data for the high and low, and for the settlement i suggest you use these two links for the proper #'s -
As they are they official numbers, but Feel free to your the High and low from your charts if you wish, remember intra day numbers will give you more tight pivots as 24hr data can lead to large pivot gaps.
Also for anyone having issues with the Shadow Trader feed, feel free to try this link
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