** Market analysis for closing day 05/04/09 **

Okay everybody today was a bullish day with most indexes doing a continuation of the bullish trend from their previous hammer candlestick pattern from Friday. We had a nice rise up in the morning consolidation and then a nice rise up into close. Some say we are at the top for sure now and some are saying bull market. Volume has been light, but price action is taking us higher. I was noting that the indexes are clearly at resistance levels right now, however the XLF just broke through some key resistance at that 11.25ish level. We will have to see if that holds, however it that holds and the XLF continues higher I do believe that the market can continue higher as well. If you look at most of the candlesticks on the indexes they formed a bullish long white candle stick( Marubozu candle) which is very bullish. The indexes did have better volume then Friday's action as well, I think except for the small cap. So this could be a sign that optimism is slightly leaving the market. So we will have to see what happens tomorrow and what happens with this stress test crap. The market may sell the news or act like they really don't care and take it higher. I have a video for you guys to enjoy. I show in the video an option trade that I did partake in, however sold before the baby exploded because I got a little scared and had to go to scottrade. I can't use scottrade as an excuse, but I can say that never be scared to pull the trigger and stay in the trade as long as all signs are a go. I had all the signs, pulled the trigger, and all things were a go. However, I was to quick to sell when really there was no clear break of previous support( sell signal) that would have told me to then get out. The mistake cost me roughly $85 bucks. Just goes to show why you should be patient, and wait for confirmations of buy or sell signals before taking further action.

Category:

Education

Tags:

• stocks
• options
• market
• stock market
• profit
• trader
• trading
• dow jones
• twitter
• askchrishetrades