5 years ago
Wednesday, September 22, 2010
USO update
Looks like thus far USO found support at yesterday's lows, often we see a shakeout below a level like that before a move starts up. 3C is climbing, not quite in leading position, but definitely in a positive short term position. This would be a short term trade as well if you decide to go with it. Just watch that it doesn't slip too far below yesterday's lows. A reasonable way to trade it would be to set a wider stop with fewer shares, if it starts making higher highs, higher lows, then add to the position.
6 comments:
Brandt, we are coming up on the daily pomo sale. What is 3C telling us?
Fed buys $2.07 bln in bonds; Treasurys stay up 09/22 10:08 AM
NEW YORK (MarketWatch) -- The Federal Reserve Bank of New York purchased $2.07 billion in Treasury debt maturing from 2013 to 2014 on Wednesday, part of officials' pledge to reinvest cash from maturing mortgage-backed securities and housing agency debt back into the bond market to support the economic recovery. Dealers offered to sell the Fed $20.486 billion in debt. Analysts at primary dealers expected the Fed to buy about $2 billion. After the results, the broader bond market held onto gains, pushing yields down. Yields on 10-year notes fell 4 basis points to 2.53%.
In a recent post today I covered your question, there's a descending wedge I'm a bit worried about and a positive divergence on the 1 minute. Every other timeframe on the SPY is now showing leading negative divergences.
Bonds are showing negative 1 min divergences, long term most time frames on the 7-10 and 20 year longer term 10, 15, 30 and 60 minute charts are confirming the trend and some are in leading divergences up, which is uncommon to see.
The wedge broke to the upside, possibly a shake out to tray and trap some longs. Looks to be running into some resistence and coming back.
Yes, there's still a positive 1 min divergence there. $113.70 or in that area should provide some resistance-we'll just have to keep an eye on it, I don't feel like it's a major threat-it's an intraday pattern. #c 5 min has not responded to it at all so in my mind this is most likely a market marker trading their account. The mm's can account for 30% of the daily volume just trading their own accounts.
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