The bears had too much fun already with the markets. We got oversold levels, and short covering lead the rally last night.
The bears have gone all in, and now they’re trapped and killed by bulls. Enjoy while it lasts. Rally!
Short Term Bullish Reversals, Relief Rallies & Trading Levels:
Looks like the bearish sea monster has taken a brief sigh of relief before it extends its market decline. Take advantage of this bear trap rally (Bear trap definition: The bulls will be trapping all those bearish shorts.)
For those who are stuck with their stocks, or looking to trade some bullish reversals. Read up on some interesting trading levels. Today will be an exciting day.
SPX Wrap Up (Via Fallond’s Picks) For complete market commentary, view his post here.
The day started with a small gap down. This was followed by further losses before rebounding back to yesterday’s close. Then markets took a second spin lower, before a late day surge took indices into (or above) yesterday’s candlesticks.
S&P was hardest hit by early morning selling, but had done enough by the close to see a bullish piercing pattern, with higher volume accumulation and a ‘buy’ trigger in on-balance-volume. There was also a significant shift in relative strength against the S&P towards the Russell 2000; a bullish development.
Tomorrow will be about consolidating today’s gains and not giving back what was strongly fought for in afternoon trading. Most of the indices will be looking to confirm or create (i.e. Russell 2000) ‘bear traps’. For bulls, today’s lows mark a new line in the sand to defend.
Philippine Trading Levels :
1.) Philippine Composite has retested the 3800 level. Look for that 3700 level to hold in the short term.
2.) Trading Levels for Volatile and Active Stocks:
Trading Stance – Buy Nearest to Support. Sell Near Resistances.
LC – 1.10-1.28, LCB – 1.13 – 1.34
AGI – 8-9.50
MBT – 60-67
ALI – 13.50-14.50/15
SCC – 150-190
MA/MAB – 4.2- 5.00 (in centavos)
Note: I limited the stocks, but I’m sure there are several that will manage a bounce. Just trade your favorite stories.
Happy Fishing! Hopefully we all catch some good rallies 😀
Also, PGOLD starts trading today! Good for them that we have an oversold rally bounce to trade from 😀
– Faceless Trader