Today was quite the wild ride as I saw glimpses of buying pressure today that really showed eagerness to purchase which is a nice change of pace. Yesterdays Outside Day with a lower close proved to be what it usually is and that is very bullish. It is hard to believe that we had a 215 point rally today and it was an inside day on the S&P 500. It shows the level of volatility we have been experiencing lately.
I do have a bit of concern about the eagerness to purchase calls today, but then again, we were up over 200 points so as long as this call buying trend does not become a regular occurrence then this rally should stay healthy.
The probability model is giving a strong indication of further upside tomorrow with a possible blow out day to the upside. The model is also giving us strong directive to fade a strong gap tomorrow whether it be up or down.
Day Trading today we captured 16 1/2 points and I do hope some of you were able to get a slice of that. Tomorrow should offer some excellent potential as well.
The chart below is one of my favorites and once it turns up, which should be soon, it will confirm the intermediate term buy signal.
One strange thing today is that as strong as the market was, about 75% of our stocks in the aggressive trading account were down. Now I am not concerned about this as the nature of these types of stocks is volatility through and through. It is one of the reasons that this type of equity trading might not be right for everyone, but it is also why the returns since I began posting them in August have been so strong.
I also put a poll up on the blog that asks if you think I should post the day trading items in a separate blog as I know not all of you day trade and I can see how it would be a pain to wade through 20 some posts a day to find the intermediate term analysis. So if you can take some of your time and participate in the polling I would greatly appreciate it.
If you know of any family, friends or associates that might be interested in this blog please feel free to pass the word or send them a link.