Monday, February 06, 2012
Today's Trade Minimize
Jan 29

Written by: Trader
1/29/2009 7:00 PM 

Natural Gas has daily buy divergences and brok to the upside from a quasi-descending wedge pattern.  Should have one or two more up days.  Daily chart is shown below.

image

The broader equity markets did a breakaway gap to the upside on Wednesday leaving an island bottom.  Then, on Thursday the market gapped down, close to Wednesday's low leaving a lot of trapped longs.  So, now the momentum has abruptly shifted back to the downside so it's time so short any bounces to the hourly 20 period EMA.  A true breakaway gap where momentum had shifted strongly to the upside would never had done that.  Chop suey - but that's just the way the market works sometimes - its the hazards of our profession.  Daily SPY chart is shown below:

image

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