Saturday, May 18, 2013

A LOOK BACK: ARE WE CLOSE TO A CORRECTION? 5/18/13

RELIEF BREAK OUT RALLY 1/2/13

BOT TRADING SYSTEM

T he market responded to the mini agreement by the political teams, opening with a gap of some 20 points.  The near term threat:  a move to sell off some by profit takers.  This is not that unreasonable with a range day after the gap, and investors beginning to throw in some puts.

THE PRE-OPEN LOOK

[08:40] <CM> goodies for today   48.5-44.75-41.75
[08:42] <CM> a +20 gap even on the Globex  today we will likely see a trading range until all the talk settles in Washington
[08:43] <CM> some econ news later in the week to note.  if they continue to talk and show progress, we will see es eventually move into 1500  and possible 1652-83 for the year highs 



Corrections are like the "guesstimating" business.  When it occurs, it will occur.  Play what the market provides and leave the tops and bottoms to hindsight..

No comments:

Post a Comment