Stocks were supposed to trade higher today amid the Irish acceptance of the EU bailout.
However, Moodys spoilt the mood by warning of a massive downgrade, multiple notches down.
Then traders are screaming that Portugal is next, followed by Spain.
This type of worry reminds us of the Greek crisis which boiled down to nothing, but just better buying opportunities for all investors.
I think SHORT SELLERS are rampant in this market now. They are hoping for the index to break below 11000. Today they are hoping it breaks below 11100.
My DOW 5 minutes chart shows that 11100 is a support level that the BULLS and BEARS are fighting for.
Short sellers will try all they can to break this level and bring in even more short sellers with them.
I feel that this is the best opportunity to get into the market if you are bullish midterm. This is because the wave of short covering can bring the DOW back to 11500 and higher.
The Europe fiasco will settle down and all eyes will look at the US existing home sales number tomorrow.
1 comment:
My trade today my fellow traders:
Buy BAC 500 @ 11.38 (not confidence but I will add my position @ 11.07)
Buy GM 200 @ 34.06 ( I will add more @ 33/sh)
Still hold 2/3 SMT position from 8.07/sh now it 9.20/share.....
Still hold AMD @ 7.58/share I will add my position today before the closing bell.
Still hold MOT @ 7.83/share I will add my position before the closing bell.
Note: I'm not the type of a trader to sell w/ a loss but for me it is an opportunity to add my positions. Goodluck and have a nice thanksgiving day.
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