Monday, January 3, 2011
Roar. Yawn. Bulls Ran Free Today S&P500 Up 1% (SPY)
By Sell Puts 1/03/2011 09:58:00 PM
To bad the big houses where flashing size up at market extremes...when your up 20 handles without a pullback you should always be looking to fade. "take profits when you can, not when your have to."
As for individual stocks we had $AAPL at all time highs silver futures made fresh decade highs, Gold tried but failed but had a valiant effort. The us dollar hollar'd a bit and regained some ground as the Euro took a few kicks in the face after last weeks interesting overnight and intra day "interventions?".
China PMI was weak, though this did faze many of the metals stocks, primarily because US factory
production showed some "signs" of improvement.. In my opinion these signs were just excuses for the bulls to turn the HFT machines past 10 to the 11 notch.
The support tonight is 1264.75 with resistance being intra day support for a bit today of 1267. 1260 and 1255 are key levels on the downside if and when we ever test them. Profit taking will come into this market at some point and we must be prepared for it, now it appears its just not the time.
A lot of twits asked me last night and days prior what i thought monday was going to look like, my only answer was trade what you see. If you spent all week coming up with a trading plan that come monday morning was blown out of the water where do you sit? Follow the futures, notice their price action and they will tell you where the market is going. Many traders had plenty of time to get long the market before she rocketed off the open with all her irrational exuberance.