Pre-open:
Big move in the futures, NQ testing its 50 dma, near 2132. It's buy the dips. Support will be 2114, 2111 and 2105. There is probably an opening short, but it's just a trade. The trend is clearly up as shorts scramble to cover. ISE was very low yesterday.
Keep in mind that this is also the end of the month with lots of window dressing and rotation into stocks that will look good next quarter. It could be a choppy day to trade once the opening moves are done.
There is really no good news out there, other than a priced in rate cut, so at some point we should get a pullback. Just be careful of standing in the way of this freight train when it decides to go forward. If you are not long, be patient and let it come to you.
Big move in the futures, NQ testing its 50 dma, near 2132. It's buy the dips. Support will be 2114, 2111 and 2105. There is probably an opening short, but it's just a trade. The trend is clearly up as shorts scramble to cover. ISE was very low yesterday.
Keep in mind that this is also the end of the month with lots of window dressing and rotation into stocks that will look good next quarter. It could be a choppy day to trade once the opening moves are done.
There is really no good news out there, other than a priced in rate cut, so at some point we should get a pullback. Just be careful of standing in the way of this freight train when it decides to go forward. If you are not long, be patient and let it come to you.
This entry was posted
on Friday, November 30, 2007 at 11/30/2007 08:28:00 AM.
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11/30/07 10:40 AMLooks to me like we are waiting for the DJ-30 to break above the 50% retracement of the Oct - Nov down leg. My chart shows that is at 13,458. We stalled just below it.
11/30/07 1:21 PM
Actually, $SPX stalled within a point of its 100EMA which is also its low for October (which was a doji). IMO, the battle is for a monthly 'close under doji'. A close above 1490 today suggests we go higher from here. A close below suggests we need to retest the lows in December before moving higher (just like we did in July of last year). Same chart, different year:)
Michael
11/30/07 1:46 PM
Good comments...
11/30/07 2:03 PM
Good notes, but always remember the macro picture. ES traders often get caught up in their world, but it's always in the end about bonds versus equities and where is the best risk reward return. So watch all these support level, but have ZB/ZN futures on your screen as well. Today's action clearly underlines the connection. Any long term chart will also always show rising yields coinciding with a rising stock market, until of course, yields become too attractive. But we are very far from that (5%+).
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