Friday, February 20, 2009

Market reversal and the sensitive Stock as an indicator








Today, market open sharply low and spent most of the day below the gap. In fear of nationalizaiton, BAC and C, the most actively traded stocks for the day, sinked to a level rarely seen,  (BAC~2.5$ and C< $2). Around 1:20PM, both had a sharp V-reversal after a parabolic moving down, while SPY sits on the low rail of the downtrendline, and an 5day 5%envelope line. 

As BAC is a very senstive indicator for the market at this downward move, it's very likely the general market will follow. At about 1:30, Spx starts to climb up, though the volume is not impressive at the beginning until it broke out a micro-down trendline.

I realized the great chance but didn't take action, due my stress caused by my traped CL and ES position.


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