May 12 2008
Today’s Trading Look-Back – May 12, 2008
The start of today’s session was fairly predictable. The end, a bit less so. I was expecting a bit of backing and filling on a day that otherwise didn’t offer much to be excited about.
The market started off around 1390, which put it nicely between Friday’s 1388 point of control and the one at 1396 from Thursday. The other meaningful point of reference was 1400, above which prices were rejected on Thursday.
The market didn’t rally up toward 1396 right away, which is kind of what I expected. Instead it went the other way. It might not have nailed 1388 right on, but it didn’t go far enough lower to get one thinking a breakdown was happening either. In hindsight that was the buy point.
The market eventually did reach up and tag 1396. After a short pull-back, it then proceeded through. I tried a short, but obviously it didn’t work out. No worries. The 1400 level should still be resistance. That it was, for a spell. Again a short didn’t work out. As the market demonstrated more strength than expected – or just a lack of sellers.
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