Third times the Charm?
Sat, Sep 4, 11:16 PM ET, by Jeff T. - Freshman Equities Trader, Hedge Fund Live
What a wild week. We sold off Monday right down into support at 1037.50 on the futures and actually held the low of the previous week by 2 ticks. On Tuesday we were able to catch a small bid as Chicago PMI and Consumer Confidence had a slight up tick, but, it was Wednesday where we saw the real fireworks. We had ADP Employment out in the morning and the market didn’t react much as it was waiting for ISM Manufacturing due out at 10. There wasn’t much confidence in the number as the street was preparing for something ugly, possibly sub 50, then at 10 the number printed 56.3 better than the 53.00 consensus. The market ripped a quick ten handles higher and I can remember Dean calmly say “cover more futures we’re going higher”. The market did go higher and closed the day up 35 handles, which is the typical up/down day on a surprise number, according to Dean. After a solid Wednesday the numbers continued to improve and we saw a small up day Thursday with a close at the highs which I found strange, as I expected us to sell in to the close as Traders took off exposure into the Payroll Number Friday morning. Anyway, the market must have been telling me and the rest of the world something as the number beat and the market rallied up above 1100, closing the day at 1103.50. So after a nice weak of better than expected numbers and close to a 70 handle rally it seems almost inevitable that for the third time we’ll test the 1130 resistance level. A lot of traders live by the rule third times the charm when it comes to levels and I think after the solid tone set this week it’s not gonna take long to see if the rule will reign true. 
Visit HedgeFundLIVE.com.
Experience Hedge Fund Live; the web site gives you access to a Transparent Hedge Fund through its virtual trading environment. As a special offer to Self Directed Investor visitors, you may use the following price reduction code and receive a 33% discount: SDI33P. You may also choose the Premium Membership 4 Week Free Trial option when you register. Sign up NOW for a 4 Week FREE TRIAL, receive the 33% discount and enter Hedge Fund Live!
SDI Glossary: "price" Definition
This Article's Word Cloud:
Anyway
Dean
Employment
Friday
Fund
Hedge
Live
Membership
Payroll
Wednesday
Week
What
above
after
better
close
consensus
cover
discount
down
enter
environment
expected
futures
handles
have
higher
into
market
morning
much
number
numbers
preparing
react
receive
register
rest
rule
small
solid
something
than
third
through
tick
visitors
week
when
which
More articles: 1 2 3 4 5 6 7 next »
|
RSS