Thursday, January 21, 2010

Buying for Tomorrow

I plan on doing some buying near the close to capture a gap up move in the ES.  I am willing to take the overnight risk tonight with traders fearful of further weakness.  With support at 1115 on the S&P right below, the risk reward is very compelling.  Also, the European and Chinese markets are very oversold.

10 comments:

  1. thanks a lot for all the updates

    ReplyDelete
  2. counting on GE and GOOG to give us bulls wind in our sails.

    ReplyDelete
  3. A rally tomorrow would be nice.

    ReplyDelete
  4. Are you at all worried that everyone and their brother thinks that this is a buying opportunity.

    The main difference from this sell off and the others is interest rates. We are raising them soon and china has already started.

    Yeah going long for a trade sounds fun ,but you could get really hurt here. Be careful!

    ReplyDelete
  5. GOOG tanking ...any thoughts?

    ReplyDelete
  6. nicasurfer, I understand your point about there being risk here. I just think the reward justifies the risk at these prices. Today flushed out a lot of nervous longs. Now we have overhead resistance at 1130-1135. I think we can easily bounce to those levels from here next week.

    ReplyDelete
  7. How long are you right now dawg.

    I'm 60% long my portfolio right now.

    I'm using the rest to average down if I have to.

    What's the lowest we can go 1100?

    And if we're right we bounce to 1130 by tomorrow.

    I don't want to reshort till at least 1135

    ReplyDelete
  8. I'm not worried about GOOG, if China bounces from its oversold levels tonight, I expect the ES to rally overnight.

    ReplyDelete
  9. I am fairly long, but I have room to add more if we go lower. I think this dip is a swing trading opportunity, not just a daytrading opportunity. I think we'll get to 1130 sometime next week.

    ReplyDelete
  10. 1130 is only like 14 points away.

    It can easily happen tomorrow with the volatility we've been having lately.

    ReplyDelete