Morning Update: 2/10/2012

11:23 pm…

The stock market indices had an up-day today, but the technicals were not very confirming, and did lead to concern here. The day started out with a big pop to the upside. They then pulled back sharply, held secondary support, and then came on with a bang as shorts were getting squeezed higher. They reached new multi-week rally highs, getting up to 2565 and change on the NQ, and just over 1352.75 on the ES. In the afternoon, they consolidated, backed and filled, and pulled back in the last hour, but not too much damage was done.  Still, it was another up-day despite the negative technicals. We’ll have to see where we go forward here, but I’m urging everyone to use caution in this zone here, because we’re extended and starting to look tired.

 

I had two trades today 6C and YM

  • 6C was a balance extreme responsive trade that I’m still holding as a swing short currently positive
  • YM was a balance extreme responsive short that I’m still holding and positive on the trade

 

FRIDAY NEWS:                                                                                                                                                                                                                                                                                                                                    Forecast                          Previous

09:55  USD Michigan Consumer Sentiment Index 74.3 75.0
09:55  USD Michigan Inflation Expectations 3.3%
12:30  USD Fed Chairman Bernanke Speaks
14:00  USD Federal Budget Balance -65.2B -86.0B

Looking to manage the open positions I have and take profit when necessary. Would like these shorts to turn into longer swing plays into next week. Noticed ZB bouncing off of the lower trend line might be a setup into next week as a weekly breakout play if it can manage to get over the highs at the upper extreme of the current pattern.  We shall see. Ready to Rock n Roll!

Olof Thomas

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