TradeStalker's
R.B.I. Trader's Update
11 / 9 / 2009
(Published Since 1996)
...............................................
Dateline: 6:06 pm eastern time, 11/9/2009
The market gapped up on Monday and it was a steady trend-up
day from the get-go. There were small reactions at
resistance areas on the way up, however the pullbacks were
very small and well contained as the ES grinded its way to
1092.00 just before settlement.
The Dow and Nasdaq 100 both made new closing highs on
Monday, while the SP500 didn't quite make it. The market
looks to be in a bit of a melt-up move, but a breakout to a
new high on the SP500 should have a very hard time on
sticking. The internal gauges are near the polar opposite as
they were just over a week ago, with the SP500 closing at
1036.19. The closing Trin on that day was just under 3.00,
an extremely high level of fear. On Monday's close, the Trin
was a miniscule .28, showing signs of panic buying as the
up/down volume ratio on the NYSE was 18 to 1. Along with
this, my RBI oscillator spiked into overbought status and
the 3 Day Thrust closed at +.65.
When the indicators get to these extremes, the odds favor
being careful on the long side and be heads up for a
reversal pattern. At the moment, the market will be ok
unless the initial support is not held. So, look for early
strength to set up a shorting opportunity, and if the market
obliges be alert for a reversal from initial support. If
that is not held, then odds of the bounces failing will go
up.
December 2009 SP futures resistance
symbols: emini = esz9 / big contract =spz9
1092.00-1092.50
1098.00-1098.50
1102.50-1104.00
December 2009 SP futures support
symbols: emini = esz9 / big contract =spz9
1087.50-1087.00
1080.50-1079.75
1074.50-1074.00
December 2009 Nasdaq futures resistance
symbols: emini = nqz9 / big contract = ndz9
1767.50-1768.25
1775.75-1777.25
1784.50-1786.00
December 2009 Nasdaq futures support
symbols: emini = nqz9 / big contract = ndz9
1761.50-1760.25
1752.50-1751.50
1742.00-1740.75
December 2009 Dow futures resistance
symbols: emini = ymz9
10195-10200
10240-10245
10295-10299
December 2009 Dow futures support
symbols: emini = ymz9
10163-10157
10114-10108
10041-10037
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Good Trading,
Mike Reed
TradeStalker.com
Copyright (c) 2009 by TradeStalker.com, Ft Wayne, IN.
TradeStalker Updates may not be redistributed without
permission.
This publication's primary focus is trading the index
futures. However, you can also use my nightly updates to
trade the following ETF's (SPY), (QQQQ), (SDS), (QID),
(DIA), and (DOG)
www.TradeStalker.com
PO Box 9783, Ft Wayne, IN, 46899
Disclaimer
The financial markets are risky. Investing is risky.
Past performance does not guarantee future performance.
The foregoing has been prepared solely for informational
purposes and is not a solicitation, or an offer to buy
or sell any security. Opinions are based on historical
research and data believed reliable, but there is no
guarantee that future results will be profitable.
We are not advocating trading futures. The prices and
contracts in the TradeStalker Updates specify a manner
in which you could trade. We occasionally mention the
SP500 and Nasdaq futures markets because it is
extremely liquid and tends to lead the other markets.
This is not an endorsement or recommendation of the SP500
and Nasdaq futures markets. The risk of loss in futures
is substantial. You can lose more than your original
investment. We are not Registered Investment Advisors or
Commodity Trading Advisors.
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