Day Trading – The Bullz And Bearz

Will Obama Speech Drain The Market’s Energy

February 25th, 2009

Good Morning! After watching the speech last night by our new President Obama, I found myself getting tons of emails from people suggesting that the markets are going to sell off again today – as they usually do when Obama speaks. FranklyI don’t see us erasing all of our gains from yesterday, but as I mentioned on the Trading Video last night, we could see a slight pull back from normal profit taking. As the futures suggest, this is exactly what might happen today. I am still looking for the markets to rally near 825 on the S&P before I get out of my long positions and ride the next short wave down. Below are today’s intra-day support and resistance levels for the S&P. If we make it up to the first resistance level at 787 I’ll place a very small bet for a one day reversal. Now, if we get anywhere near my 809 level you can be sure I will be exiting my longs and going short. That type of two day move is very unsustainable and would almost certainly warrant a reversal.

 

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