stock market
Down Friday, Down Monday
Today was one of the worst days for the markets in the past 2 months. Even though the Nasdaq and S&P barely missed it, but the Dow was down on Friday and Monday.
“For most professionals, Fridays and Mondays are the most important days of the week. Friday is the day for squaring positions - trimming longs and covering shorts before taking off for the weekend….Monday is important because the market then has a chance to reflect any weekend news, plus what traders think after digesting the previous week’s action.”
–Stock Traders Almanac 2009
Stock Traders Almanac note that from 30 years of history “…a down Friday followed by down Monday is often an important market inflection point that exhibits a clearly negative bias and frequently coincides with market tops and on a few climactic occasions, such as October 2002, near major market bottoms.”
Even though we may not go straight down, but I do believe a correction larger than 10% is in the works. So I will start looking for more shorting opportunities over the next couple months.
Trade Reviews
GOOG (Public, NASDAQ:GOOG) I did enter into a GOOG long today at the 50MA on the daily. Last week I was looking for it to hold 415 then move higher, but it quickly broke that today and traded lower in a hurry. I got in at $403 today at the 50MA on the daily. I am looking for one final push higher in the markets before we plunge lower and Tech stocks should rebound nicely.
BAC (Public, NYSE:BAC) This idea worked exactly as expected. XLF broke below the 50MA and BAC was the weakest stock in the sector. I did not play the move but the trade was there.
Discussion
No comments for “Down Friday, Down Monday”
Post a comment