Pre Market Tao Thuraday 6-25-09

With the jobs report worse than expected and Gdp down -5.5.....looks like we sell any rally close to the upper channel spx 900- 987.....
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9:47 etam.....this looks like a good plase to start making a position 9010 is first entry 2 contracts july 98 put... I am prepared to add more to position if price tags upper spx channel at 905.......spy is below pivot 9023 and testing yesterday close .....tick is a little bulish with a +800 ....volume is increasing
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10:00 e am spx just touched top of channel ..907 .......i added on two more contracts.... this a truth or die move for the market today ...the bulls either pull a rabbit out of their hat or this market is going down.... i have my stop set above yesterday high
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10:30 et am....looks like the safety play is going in to place....xly....xlp....vlv and vlk are the leaders this AM........that smell like rotation to me..... it looks like this spike is on decreasing volume.......treasuries are riseing and US Dollar looks to be in a small pullback after a gap up at open....... i say the bulls and bears are going to be in a slug fest most of the day....ie: range trade....high spy 9120 to low 8975
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11:11 am et.....the US Dollar has rallied up to a multiday resistance level in side an ascending triangle.......looks like it could rock back and forth for a few more days maby in to next week befor it breaks away to the up side........
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11:30 am et .....clearly the market is trying to turn to the up side........price is approaching the 62% retracement..........my stop is just above here.....
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11:40 am et........looks like a n up ward sloping channel is beginning the top is spy 9145.....im going to sit this spike out ...and expect price to return to the mean........these bad news is good news days make me nuts..........this still looks like a rotation to safety action today.......
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12:06 Wow.....what a hood wink! ......spy is at the top of the monday gap resistance level ....this will usally put the Breaks on this momentum...I'm thinking we should see a rollover.......back toward the pivot.....that was the 78% retracement we are now in the danger zone for a reversal conformation to the up side........
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surprise rally's are a difficult thing to understand but some times the market has to test a level so it will go there .....and when it makes a move like that reminds me of my dog trapping a rat in the corner......the rat puts up a hell of a fight but the dog, even if he gets all bloodied up ,still HAS to kill the rat .... sometimes there is no good explanation....it's just the nature of things...
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1:39 et pm......we have just experienced a 5 wave push today now we should see a correction ....
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in to the close ......the market expended a lot of energy to push up to the high.......not sure how it will play out in the am....ES futures could not hold that key 915 ....but market is really trying to stage a come back......all the XL's have moved up to yesterday range and tick has been very bullish.....it's very hard to be short on days like to day.......but i still feel like this is a safety rotation.....with low volume rally.......it s still all about the US Dollar.....held my short over to am session .....expect a test of todays channel .....and in my experience these suprise rallys suggest buying in absence of fundamental reasons......ie fear to miss out on the next big move up....or it could be buying window dressing in mutual funds is starting a little early........