Monday, December 3, 2012

DJIA and Nasdaq 100

for the week starting 3-Dec-2012


Last week DJIA formed higher high, higher low - it is bullish after testing strong support 12800 - lowest 12763, and ended almost flat for the week.

It’s December already! Hopefully reports on the job market (NFP, Friday), manufacturing (PMI, Monday, Wednesday, 11pm) and consumer spending (Friday) this week may provide the market with a jump start.

Good, or bad.

Market seem bullish after testing 12800 pts., but returning to 13030 pts. also means that DJIA has recovered 50% from the fall since early Oct-12 to mid Nov-12.

Bad habit – I am waiting for a short signal.
Waiting, means no short trades for the week except NFP and consumer spending (watching).

But there are also a few clues that market may continue trading higher – first clue: market closed above EMA200.  Oscillator is oversold.

May be, it will return to 13200 pts. – 2/3 from the fall since early Oct-12 to mid Nov-12.

Trade higher.
Today: Go long near 13000 pts., SL 30 pts. away, TG 13100 pts. / EOD.

Nasdaq 100

Long or short, dependent on which side of chart you sees.
I was prone bullish on Nasdaq 100 until it marked a new low 2493 last month (mid Nov-12), it takes out bullish wave, and the bearish wave is still going on.

Similar to Dow, Market recovering from the early Oct-12 to mid Nov-12 slide, and recovered 50%.
Overhead resistance 2700 pts. is strong, if only Nasdaq 100 can break above 2700, then it will have chance to trade higher to 2730 pts., otherwise, return to support 2630 pts.

No comments:

Post a Comment