Thursday, June 17, 2010

Bad data today but...

... bears were not able to push SPX bellow SMA200. This is bullish, this is exactly what it's suppose to happen when the momentum has turned bullish. Intra-day, SPX has slipped bellow SMA200 but bulls regained control by the end of the day. Normally I would have jumped "all in" but the fact that there is no clear long term trend makes me a little bit cautions so I only bought a little bit. I actually don't trade stocks anymore, I do trade options but I don't want to talk about this because I may open a whole new can of worms. When playing options one need to be pretty sure what he is doing since the gains and the losses can be pretty high.

The buy signal on 60 minutes chart looks even better today, now it's easier to see EMA50 crossing EMA100. Also 5 day SMA is rising now, another bullish sign. The longer bulls manage to stay above SMA200 the better (of course!). More important than SMA200 is 1,100 level.


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