Tuesday, October 1, 2013

10/01/13: Small long position heading into tomorrow

Government shutdown was expected based on all the dealings going around.  Now that this is a reality, market is looking ahead.

Today, SPX bounded up +0.80%.  I think now there is more upside to be seen in SPX.  On the hourly, it looks like a small irregular shaped inverted head and shoulders.  I think the setup is favorable for bulls here.  A lot of fear and negativity went into the government shutdown and well, you buy when people are fearful and sell when people get greedy.

I've been playing a lot of short term trades (I added a bunch of markers for trades).  It is hard to post in real time so I probably don't have much credence but so far some of these small trades have gone favorably.

If the inverted H&S plays to fruition then we should see a rapid rise into SPX 1715 give or take.  Ultimately, I think we see another new all time high by the time this month is over (1750).

On another note, we ended today with a very blatant positive reversal setup on aroon oscillator (aroon osc made new low but price made higher low).  I love aroon, I think it's one of the best indicators out there as long as you know how to use it and incorporate with other indicators.

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