August 9, 2010 Market Recap

The market moved very little today, but it is gearing up for a larger move. 10,700 appears to be resistance. It is having a hard time closing above that point. Also, volume was lighter than average for a while. A larger move should be happening in the next couple of days.

The S&P500 is also consolidating between the 1120 and 1130. Because of that I have submitted a call order on the SPY. If the S&P crosses 1131, the I will buy 2 113 SPY calls. If the S&P crosses below 111.9 then I will buy 2 SPY 112 puts.

The NASDAQ is also consolidating. There should be a larger move in the market in the next couple of day. Once it breaks, it should go up or down quickly.

August 6, 2010 Market Recap

Today I am going to focus more on the S&P500 and Nasdaq, and not even deal with the DJIA. It is important to note that the futures went down due to unemployment reports. Yet, both the S&P and the Nasdaq went down, touched the trend line and proceeded to go back up to the 150 day moving average.

The S&P needs to go above 1,130 or it will break below the trendline proceeding lower again. The S&P has resistance there from June 21st as well, which is slightly higher than the 150 day moving average at 1122. If the S&P gets tighter in the next couple of days, it might be good to use SPY to order a put and a call one at 1130 and the other at the trendline. I will do a little more analysis today and tomorrow to see what I want to do.


The Nasdaq is very similar to that as well. It also went down and touched the trendline. I am still concerned that the Nasdaq and S&P are not growing like the DJIA. Shows weakness in the economy and not a true rally.

It appears that the bear market may be over. With the DJIA above the 150 day moving average as well as a new trendline going up. It has pulled back a couple of times to form the new trendline. The only concern is that the S&P500 and Nasdaq are toying with the 150 day MA. Also the S&P 500 has not passed over the MA so there is more strength in the large caps and as much strength in the small caps.