Apr 16 2008
Today’s Trading Look-Back – April 16, 2008
Today we finally got some interesting stuff going on. The fact that the market was able to confirm the formerly rejected levels (A period) above 1336 in the afternoon yesterday gave a strong indication that today would see the market move higher. A little help from good earnings releases ensured that would happen.
The first meaningful level of the day was 1350, above which prices were rejected on Friday, and close to the 1352 lows from last Wednesday and Thursday. Above that, the 1356 level was last Wednesday’s point of control and 1364 Thursday’s.
 
I took a shot shorting against 1350 early on, as the run up in the pre-market could easily have been given back at least partially off the open. I put my stop at 1354 because if the market hit that it would clearly have shown more strength that was going to ever end up working in my favor. I did get stopped out, but on the basis of the expectation that the market would run up through last Wednesday’s/Thursday’s combined value area (basically 1353-1367) I went long. As you can see, things got a bit sticky around 1357, but late in the day the market broke free and did what I expected.
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