Wednesday, September 05, 2007

Morning thoughts - 9/5/07

The large gap-down on ES, which is currently trading at 1479 will most certainly push my 120-min indicators to a sell at the open. So the trade is "Swing short". Since i would need a large stop of about 20 points to take this trade, i will wait for some sort of bounce to develop and incrementally start building a swing short position.


1:00 Est update

Something doesn't seem right here to short this market. The market was overbought yesterday on the hourly. It was all reset with just one gap-down. Now the hourly momentum is turning back up from oversold levels and the 60-min uptrend is still intact. That's generally a bear-trap. I went long some ETFs and options around SPX 1473 levels. If we break below intraday lows, then i am wrong and will flip short.

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