Day Trading – The Bullz And Bearz

Markets Digest Stimulus Plan On An Unlucky Friday The 13th

February 13th, 2009

Good morning! I just have to preface this post by saying it would be extremely ironic if the markets sold off again hard on a day like today. Pre-market futures are pointing to a fairly flat open on the street as another round of news hits the wires from companies like Rio Tinto, Toyota, Prudential, etc. Given the rally we had coming off of yesterday’s lows, I am expecting a rally here today of course. But as a technical note, hammer formations – like the one we got yesterday on the daily charts – are likely to retest the lows. What this means is that since the lower shadow of the formation was so long, it’s likely that we could see another round of selling sometime in the next week or so to really test that support level. If we hold out yet again, then it’s time to get bullish and start buying up broken down securities. On a commodities note, I think gold is starting to show signs of a short term retracement.

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