Day Trader – Trading Plan 28 January 2011
Yesterday I said “ we see a drop to either 1292-1291.25 or even 1288.25-1287.50. We saw a pre-market low if 1289.25 when Japan bond news came out and during the US market day we held 1291.25. My assumption that we will see a new high at 1297.75-1298.50 was right on the spot.
If anyone might have noticed, the Dow Jones is on the verge of a 9th straight winning week and I hardly remember when that occurred the last time. Surely not in the last 10 years. In order not to break records, the Dow needs to loose 120 points!
Today’s important support is the 1293.50 area. A break would be a bad sign. Having said this, the bigger up trend support is 1288 for now.
This area most likely will hold on the first trip down, but somehow I have the feeling we see it fall today.
It would take a break of 1298.50 to keep the bulls going. This area was sold too many times yesterday and between 1296.50-1298.50 I saw some handsome selling yesterday. First support for today is 12997.75-1298.50 and it might offer a handsome short opportunity if the futures , trading currently 1293.50, are managing to get up there again. As of late, they usually do but lets not take things for warranted.
I sold this very morning my 2324 @ 2320 and took 4 points. I am still holding 1295 & 2331.50 shorts. Considering that the Dow looks weak and the fact is up 9 weeks in a row, makes the odds of a nice downer on Friday in my favor.
Good trades to all of you
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