bought 37 SPY for 80.93 today.
Why this will go up: There was pretty strong support at about 807 for the S&P. It bounced off 806 this morning (as predicted in this post) and then punched down through it after getting up to resistance @ 825ish. It reclaimed the support, where I bought it a la my trend-trading system I\'m developing and discussed here. I will sell in the mid 820\'s for a $50 gain. Why mid 820\'s? It hit the mid to upper 820s several times today, bouncing down each time. Overall, I am assuming that it will bounce up from support to the next resistance level, then fall again.
When my assumption will be proved incorrect: If the SPY breaks 803, it\'s pretty safe to say that a)it broke through support and may go lower (next level down is 797, but i\'m not going to rely on this) or b)there wasn\'t really support at 806, and I am trading with bad info.
UPDATE: Sold 37 SPY for 82.47 on 3/26 at 11:49 est. Made $50! I have seen some bearish patterns and very strong resistance in the market and decided to get out exactly here I said i would - the mid 820s.
Wednesday, March 25, 2009
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