Day Summary

Another down day on increasing volume hence a distribution day, things are getting bearish day by day and we may be heading towards a retest of lows on DIA and SPY atleast. DIA is the underperfomer of all indexes while SPY has some support around 1330 and last weeks low , which is very crucial for it to hold otherwise we could see some serious selling after that. Short term it seems we are heading lower.

Day Summary

Markets are trying to find a footing now for past two days but volume is missing on the upmove. S&P bounced of 1335 and gave us a nice 35 point rally since then a sI mentioned in may last weeks post. Now we have worked off extreme oversold conditions so there could be a potential for some more selling and lack of volume is supporting the downwrd pressure. Oil had a very sharp reversal today and looks heavy on top we may see some decline in very short term.

Day Summary

As I mentioned in my Mondays post we did bounce from supports yesterday morning quiet substantially but then rally fizzled late afternoon so we followed thru to the downside. Now we are reaching another crucial support on S&P at 1330, if we hold this support we may get another 20-25 points rally in S&P, if we break to 1310 then I think there is a very good chance that we may retest match lows around 1260 and beyond. I feel bulls have to take one last stand to save the rally very soon otherwise we may retest lows and who know may enter another down leg and a confirmed bear market. The signs though are not good for equities, not just oil but grains have started to move up again, Ags were lying low for last 2-3 months but today we had 7% rally in wheat 6% in sugar 7% in beans that's a huge rally for Ags. So not just oil now, ags willl start putting more inflationary pressure and Fed will be between rock and hard place and may have very little room to manoeuvre. Emerging markets look even worse, India has already broken its march lows and China is heading there, Europe is also not looking good but its more closely link to US markets.

Day Summary

We got a fllowthru day to downside on q's and iwm but s&p and dow manaed to stay positive. We are getting oversold now and we are also reaching a crucial support , I think we may see some more selling to the supports and then may try to stage a rally from those supports. Watch for 1351 on S&P to act as support and if that holds we may rally to 1373 in very short term. Dow is already at support and thats probably one of the reason dow didnt sell off today and tried to rally we may have a bounce in Dow till 12430 area. There could be some early morning washout selling before a rally attempt. This is really a day traders market so be very nimble and always have sound risk management.

Day Summary

Dow and S&P did some cathing up today and led the Nasdaq higher but it was Russell200 day as it smallcaps outperomed their big brothers. Its a good sign when small caps out perform large caps that means appetite for risk is returning to maket and people are betting on growth rather than fixed income. Volume was a tad light then last two days but as they say price is king and so for Nasdaq and Russell broke to new highs.

Day Summary

Markets tried to stage rally today but fizzled out at noon, there is some clear divergence appearing between Russell200o/Nasdaq100 on one side and S&p500 and dow on other side, I guess one side has to catchup, either S&p/dow would start rallying or nasdaq and russell would start falling, only time will tell. Thats why as I said yesterday a mixed bag of both shorts and longs is probably the best bet. So I closed one long today (SUP) and added one long (GD) and shorted one stock (LINTA). I have almost 50% split between my long and shorts. Friday is jobs number and arket may remain undecided till that point imho.

Day Summary

Market broke a low and made a first lower low in this two and half month old rally. Markets are picking steam towards downside now with todays down dayd happened at significantly higher volume. A support around 1350 could be the next target for S&P. Its a good idea to start tighting stops on the long side but aggresisve shorting is not also advisable, a good mix of long and short is probably the best bet.