Pre Market TAO Wed 08-19-09

Overnight ES traded down to a low of 977 . The Asian markets sold off as well. The US Dollar is up a bit and oil is down. ES , NQ , Spy are all approching a Do or Die area we will either bounce to the up side or break down and head south.

With the Asian markets leading the European and US Market it is becoming increasingly difficult to Day Trade the US Market during the regular US open and close. This explains the daily Gap opens which we didn't see occur on a regular basis in prior years.
The Gap opens and runs for 15 - 30 mins then price remains in a narrow range for the remainder of the day with a wippy action at the end of the day.

So It is time to approach the trade with a new strategy

Today I will sell the gap down at the open and exit my position at the first sign of a loss of selling pressure. Spy 9850 sell down to about exit 9790 .and that will be the only trade unless price reloads back to 9850 for another run down and I dont expect that to happen. But it could.

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The market is amazing....as soon as you identify a pattern ... it takes off in a different direction.
got blown out on the open ...and the big boys hit the buy button . The Mutual Funds see value at Spy 9825 and there is really no large supply so the market zooms higher......I am beginning to think there are not many bears left or at least they don't have the fire power to push the market down for more than a few days then they are tapped out. It look like the buyers are stepping aside to let the market reload to the down side ( suggesting the Bears are very weak)then the Bulls lean on every dip and as long as the fund Managers have money they are long only operations ...the market goes up.