What a consolation day - close remarks



Today is a classical consolidation day, not like yesterday,which is a well trended day. It is hard to do day trading today, and it is hard for me to predict the market close. Although

the initial morning close forecast (link)

is pretty good.

After lunch, I warned bears should

be aware of the end of the market correction (link)

However, at the end of the day, the bears has a nice fighting back. So everything is pretty dynamic.

From the charts, we can see
  • Nasdaq 100 holds above 200MA for 2 days so far
  • RSI stands above 50,usually a bulish sign
  • 5 daily candle bars formed a nice uptrend
  • QID formed a dead crossing,bearish sign
Here is my conclusion for today:
  • The correction and the down trend since May 7 is over, as warned yesterday. Today the follow through is pretty nice for the bulls.
  • IF QID can not make a golden crossing in 3 days, I will expect to see QID a new lower low than 34.92
  • On the other hand, if Nasdaq 100 can not make a new higher high than 1435.80 , I will expect it to make a new lower low than 1339.82.
Tomorrow there are two important issues:

1. 10:30 AM Crude Inventories

2. 2:00 PM FOMC Minutes

So it could be a very volatile day and may make dramatic intra day reversals ... Enjoy!

5 comments:

  1. Tiger, thanks a lot. I agree with you. Tomorrow may be more important..

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  2. You are welcome. Thanks for your input as well.
    Tiger

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  3. I think QID may go higher than 50 soon....

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  4. Yes, qid got a sell signal. But others sds, skf still has buy signal. Now qid is 37 in AH. How d u think?

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  5. yes. QID could bounce back to 37-38 as I mentioned before. I already predicted a gap down. But these are not the keys for buying QID. The key is if QID can make new golden crossing tomorrow...

    Tiger

    ReplyDelete