Daily Market Analysis

Happy Trading, I am on Holiday for Two Weeks

Now is an ideal periods for intraday trading, given the liquidity and high volatility. Unfortunately, I will be away from the market for two weeks starting yesterday. It will be interesting to see whether buying pressure witnessed yesterday will hold and mark the end of the bearish lag.

On the bullish camp, we have seen failed attempt to break new low. We have also seen some buying pressure, especially yesterday, with BPNYA above its 10 day MA few days back already. On the bearish camp, we have not seen many buy setups characterized by breakout after tight consolidation. The bounces were also not accompanied by heavy volume.

If you still have short exposure, I would suggest to reduce it. The market might orchestrate another dead-cat bounce or the end of consolidation before another bull attempt.

Happy trading!

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About timelysetup

Timely Setup Owner

Discussion

6 thoughts on “Happy Trading, I am on Holiday for Two Weeks

  1. Are you staying short?

    Posted by Andre | August 30, 2011, 3:43 pm
  2. Since I am away for extended period, I have neutralized my positions with some losses. I don’t want to expose myself to unnecessary risks while I am away.

    As of Aug 26, my mechanical market timing model still stay short. However, this position might have changed on Monday Aug 29. Unfortunately I don’t have access to my data here.

    Best of luck.

    Posted by timelysetup | August 31, 2011, 7:16 am
  3. OK, I’ll do my best in your absence. I must admit I am still short and I have been following your model because I find it really well done. I wish I knew you were going away before hand because I’m still short here and would love to have confirmation that your model is telling me to hang in there, that I’m on the right side of the trade. I cant help feel like this is just a contra trend or bear market bounce. It has it written all over it. Prices keep moving higher but volume keeps moving moving lower. We havent seen a huge breadth thrust and I dont see a lot of individual stocks setting up. Hurry up and get back here, your loyal readers need you! LOL!!! Wish me luck I’m staying short!!!

    Posted by Andre | August 31, 2011, 7:37 am
  4. Hi Andre,

    I managed to get somebody run my market timing model. Up to Aug 31, the breadth data to the upside is disappointing, even on Aug 29. In addition, SPX seems to have difficulty breaking resistance level at 1,220. Thus the program stays Short!

    Posted by timelysetup | September 1, 2011, 1:53 pm
  5. Awesome! Remained short during that melt up. Glad I did! Friday showed no good news and down it went. I hope we can at least get back down to 1100 if not lower but I’m going to rely on your timing model. I find it the most reliable thing I’ve ever seen!!! I thank you so much for it!

    Posted by Andre | September 3, 2011, 12:19 pm
  6. I am glad you find it useful. But please read the Disclaimer. 😀

    Anyway, one thing I don’t like about Friday’s action is the fact that 2.5% drop in SPX is not accompanied by heavy breadth numbers on the downside. So we maybe trapped in range-bound action. However, until significant buying appears or the market is stalled on 1150 or 1100, the market model will remain Short!

    Posted by timelysetup | September 5, 2011, 12:53 am

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