Wednesday, July 21, 2010
7-21-2010 More Volatility To Come
Good Evening Traders,
What a wild day! Early on the market came up to the gap fill at 1086 then pulled back to the initial support level of 1076. After a brief bounce, Fed chief Bernanke (who used to whisper fund managers to sleep in fall 2008) caused the market to wet the bed. Price finally found support near 1060 and is now trading again in the bottom part of the weekly range.
Only thing I can be sure of at this point is more volatility. Especially with earnings coming through. Also, I like to think that when The Fed needs to sell Billions worth of Treasury Bills they go out and spook the stock markets. Thereby driving people out of equities and into bonds. Note the Ten Year plunged to a shocking 2.86% today. I will be keeping an eye on the bond markets as well as Gold, which also took a beating today.
I updated my 15 minute chart with new support levels on today's high and low. I noticed they line up well with other swing high's and lows like the double bottom that formed on 7/19, and the opening price on the gap down 7/16. These are the levels I will be looking to initiate trades at tomorrow. Hopefully I will get to trade all day distracted! For added flavor I drew diagonal trend lines showing the triangle we seem to be forming. Thanks for reading and good luck tomorrow!