Friday, May 11, 2007

May 11 premarket action

The Eco numbers on PPI and retial sales came out, and they looked bad, but that doesn't matter, price is all that matters. ZN popped up but is now trading from where it was before the number. ES and ER2 are up. If you shorted ER2 on the close yesterday and are still holding you are feeling the pain because ER2 is at 826.5 right now. Yesterday was a double disrtibution day when looking at the charts from a market profile standpoint. I'm expecting NYSE A/D to open above 0.5 this morning. Will shorts cover at the open, or well bulls sale at the open? With the daily candle formed yesterday it looks like an easy short setup, almost too easy. I'm expecting Chop today and will be watching volume and sector strength in XLE, XLF, and SMH. I'm expecting an inside day, but will be watching for possible breakouts if the main sectors all start trending.

In the news- Greenspan sees one-third chance of recession, last time Greenspan came out and said this the reaction occured in the asian markets and then caused a global selloff, Feb 27 ring a bell? Funny that we get a news headline like this after yesterdays decline. Well, lets see what happens today......


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