Market TAO Wednesday

Hard to say where we go today but it looks like we gap up to spx 1095 and run to 1100 then slowly sell off rest of day ..... ending in a Doji

My spy plan is to sell the Gap and run up 110.00 and exit at or below 109.20

Market TAO Monday

Markets are still in a sideways range not much has changed . Fed Chairman Bernackie Spoke around noon and the market sold off a bit after he finished. His mind set has not changed for the near term. Took two small scalp trades . I am standing on sidelines waiting for a clear direction...

Market TAO Thursday

One More Day ...Ground Hog Thursday....The Rectangle Pattern is still in play.

Price was rejected today at upper resistance and sold off in the first hour then paused for the remainder of the day until the last 30 min's then totally Tanked down to the 50% fib!

I expect price to retrace back to the upside at the open at least 50 % of today's range SPX 1105 up to 1110 area then sell off again into the close. A good target would be the 1070-75 area with an unfilled gap..

Market TAO Tuesday 12-01-09

Topping Rectangle .....

Range Trading for the last 14 days.

A break above 1112 or below 1086 is what I'm looking for . Otherwise, the range is the trade zone.

If the current cycle continues, we should see a move down to the red oval in the next 3 days.

More Info on Topping Rectangles

visit this link http://thepatternsite.com/recttops.html



Overnight the es futures are up and the open SPY is a gap up....

My Spy plan is to buy the opening gap about 110.80 and run up to 111.10 - 50 and exit trade.....
this looks to be a potential trend day up so an attempt to fade the rally may not work...most times a strong rally day will close at the HOD ....keep an eye on the USD and XL's for divergence

Market TAO Monday 11-23-09

Lunar Cycles are 21 days the next phase will be on Dec 3rd....

Spx is beginning to show signs of topping.

Thanksgiving Holidays are usually bullish so be careful of reversal behavior.


My SPY plan today is to buy the gap and run up to 111.20 then reverse position to sell down to 109.00 or lower

Market TAO Friday 11-20-09

Market action today .....My best Guess.....

price will most likely retrace 38 to 50 % of yesterday and pin to the weekly Pivot into the close.....Spx 1090 to 94

my Spy plan today is to sell the rally up to 110.24 and exit at or below 109.14

I f ..it doesn't happen by European close, then I'm done for the week...

I was Early today...... The Same SPY Plan For Monday...... have a good weekend

Push for The Fib 50

The final assault!
Push for the fib 50 is underway....

Spx 1120-50 long term trend zone is the target this week. This will give us a spike shooting star candle

I must say this will be swift so don't fall in love with any direction.....take profit quickly.

I f the price holds and we get a open and close day above 1121 next week then the market moves higher....

or

price touch the fib 50 and reverses back to lower fib fan line.......notice how price has responded to the fib fan lines..

My Spy plan today is to buy down to spy 110.85 the opening gap and ride the run up until it stops going up 111.70 up to 113.85... .

Market TAO Tues 11-17-09

Overnight Es futures are down and the US Dollar is a bit up........

Spy is at a key inflection area....if we remain above 1100 then we most likely go higher ..this is options expiration week and historically the week has been bullish .....My SPy plan today is to approach the open with a neutral stance and wait 30 min's ... Will update after open

Market TAO Friday 11-13-09

Reports due this AM .....US dollar is steady ...My Spy plan is to sell up to 109.75 and exit at or below 108.07

Blast Off

The fifth bear trap the bulls have laid since MARCH!

The Market makers are calling for 1120 buy end of the year .... after today's action It wouldn't surprise me to see it tomorrow..

After the poor Friday performance the bears gave. With a gift of 10.2% unemployment report, I don't think they have it in them to significantly push the market down more than 2 maybe 4 % max at any one time.....

The Bulls have the power via the FED to Gut the US Dollar at will and they have unlimited supply of Central bank cash to push this market higher..and the O'Man wants a weaker Dollar because it help the US Export Market......so it is a loser to be a bear for more than a few hours....So We make the Bull Penguin Fly!
It's not really a bull use your imagination

Market TAO Friday 11-06- 09

OK... It's Game day! the bears had better show up today with a 10.2 unemployment rate ...If they don't,then they deserve to get it right up the A#$%$...!

Market Tao Thurs 11-05-09

Looks like the jobs report came in better than expected.

US dollar Down

Spy to open Gap up at 105.70

financial' s, teck , and industrial' s will lead the AM session


My SPY plan is to Buy the gap and run...... Spy gap fill down to 105.00 and exit above 106 up to 107

Market Tao Fri 10-30-09

Last night my office was flooded so that put a kink in my morning.....

things are back to normal now ...sort of....

looks like plan red and yellow are working ......this is in the bounce zone now ........be ready for both directions.

Market TAO Wed 10-28-09

Overnight it got very red out there....

Asia down
Europe down
Us Dollar down
Euro Dollar down ????
Gold down
Oil down
news tape bearish

Very hard to make a case for the Bulls particularly after my last post ......will the market magically levitate for the next 3 days? we will see signs after the durable goods and new home and oil supply after 10:30 et ...They are just gona have to spin this ... It's the End of the year for the Money Managers they got to pump this up in two days for Gods sake!....! or die!

spx is resting on 20day ma....

pivot daily
PP 106.60
S1 is 105.91- 87
pivot weekly s2 105.82

My Spy plan to day is to buy the Spy at the low after oil report 10:30 et ...spy 105.90 down to 105.63 ( stop placement 10 points below@ 105.50)and hold to the gap fill 108.30 ish

Market TAO Tues 10-27-09

Markets overnight are mixed .

Asia down
Europe up

waiting for home sales reports

Es futures flat

I expect a narrow range day .
there has been one penetration and one touch of the extreme Bollinger Band in the past two days on the 2 hr SPX chart suggesting a flatting out of price action for next 7-16 ....2 hr bars...

my plan today is to scale into spy up to 108 and exit at or below 106.50 down to touch of gap 106.00

Market TAO Monday 10-26-09

More of the same today...Asia and Europe are up , US Dollar weak ...Trading range is expested to be confined to the Triangle until Wed's ...... There is no way to determine which direction the market will break......I COULD MAKE GOOD ARGUMENTS FOR EITHER DIRECTION....

My plan today is to buy the SPY low retracement after the opening gap up at 108.32 and reverse position at touch of triangle upper trend line for another ride down ........ 100 point range trade.

Market TAO Fri 10-23-09

SPx will either break above upper resistance lines or remain in this sideways forming channel

....Overnight we saw it all go up Oil,Gold, Asia, Europe ...even the USDollar..

Spy Will Gap up to 109.83 resistance line...

Home sales report due and Bernakie is talking as well.....I always lose money when he talks...

So my plan today is to remain neutral
and see how price responds to these upper resistance lines.

If we gap up and break lines I'll go long and we most likely head to Spx 1120.

If the lines hold... we will most likely spend the rest of day up here fighting it out. I dont anticipate any meaningful sell off today.

Market TAO 10-22-09 Thurs

Reached top of Wedge and failed

Spy Target is 106 area

My plan today is to sell spy mid to low 108's .... and exit at or below 107 down to 106.25
With stop above yesterday high.

Market TAO Thurs 10-15-09

The Earnings season run up is reaching a fever pitch high..... will it go much higher? ...Maybe .

There hasn't been any support for the US Dollar and it continues to drop.

The earnings reports continue to show a profit on cost cutting and inventory reduction and job cuts.

Company's dependent on export trade are benefiting from the cheap Dollar for now but sales and top line revenues are not increasing.

We are still losing 500,000 more jobs this week.....

Treasuries are so crowded if there is a rush to exit the crush will be massive.

My weekly analysis remains intact Spx will continue to grind higher to 1120 over the next 5 to 7 trading days..

I have noticed the Large block + 1000 traders have been far and few suggesting a change in sentiment and wider market action is anticipating a directional change.

my safest trade today is to buy as close to Spy 108.00 as possible and exit above 109 up to 110.00

Market TAO Wed 10-07-09 Triangle Wave 4

We can expect a break out to up side. 3 targets or we noodle sideways or we break down hard after jobs report to bottom of expanding diagonal. Earnings season starts with Alcoa and and report is good so we will most likely wait for more reports to get more up side mojo next week. Pins and needles..... we wait till MR Market makes his move.