Friday, November 26, 2010

Trading in range

A bearish trading day on a light volume. I don't want to read too much into this drop since we are trading now in a very tight range, 1175-1200 and until we get out of this range market is rather neutral. The range is too tight to resist for a long time. It may get larger something like 1,165 to 1,205. I hate this type of market since the chance to get whip-sawed with my EMAs crossing is very high but what can I do? I may reduce the number of shares a little bit and stay in cash until I see further clarification.

What is pretty clear to me now is that the dollar has generated a BUY signal since EMA15 is clearly above EMA30 on daily chart. Price has also climbed above SMA70, the moving average that functioned as support on the way up. This is especially important for those trading commodities.

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