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Monday, January 24, 2011

Daily Doc!

Day Trader – Trading Plan 25 January 2011

As pointed yesterday, 1278.50-1279 was the key for the bulls and it was defended twice. The break of 1283.25 initiated a bullish break out.
My stop of 1281 was taken out and I was left with a 2.50 profit on this trade.

This was bad news for the bears as the market turned short term bullish.

With a high of 1289.75 a normal reaction would be a pullback to first support at 1286.50 or even a test of the breakout area 1283.50-1284.
The latter must hold to keep the uptrend intact.

First resistance 1290.50-1292 is the next obstacle for the bulls to break to keep the rally alive and going. It might be difficult on first attempt as we have some economic numbers today, but it is worth to look out for.

Bulls are in control and unless 1283.50 breaks, it makes no sense to fight it J

If bulls manage to break 1292 a run to 1299 (1303 SPX ) might be in the cards.

Nasdaq recovered as well and moved to 2300 level. Dow was up 108 points adding another bullish picture.

The usual bear camp must be in pain as bulls manage to answer back on any attempt made by the bears to send market lower.

I am holding short positions ES 1287.75 and  NQ 2299 with a plan to exit on first pullback to above mentioned area.

1283.50-1284 might be worth a long entry with a tight stop and should it break, there is still time to go short to aim for lower levels.

Good trades to all of you

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