Ranging Market, Short-term MACD close to zero --> No Trade
5 min Emini Nasdaq 100
Hi,
The market's ranging now... still digesting the FEB cut... But if you are going to trade, I would advise not to go short... Never fight the FEB... especially in the short term..
You might think that there is a good trade from the upturn in Stochastics and price bouncing off the moving averages... But look carefully again... Short-term MACD is not really moving up.. and it's sticking around zero line... I was not prepared to take the risk... Not worth it.. No Trade today.
Fundamentals:
Wall Street scored its second straight big advance Thursday after economic figures suggested the job market is holding up and as lawmakers agreed on measures that could ease concerns about consumer spending. The Dow Jones industrials rose more than 100 points, bringing its two-day gain to more than 400.
While stocks fluctuated throughout the session, trading was decidedly more calm than on Wednesday, when Wall Street executed a stunning turnaround that transformed a sharp sell-off into big gains for stocks. Thursday's rise was notable, however, as investors will often move in a day after a rally or plunge to take profits or scoop up bargains. That the buying largely continued was a positive sign, observers said.
Investors were clearly interested in buying, but despite the size of the advance, there didn't appear to be much conviction to it -- the market is still searching for clues about the economy in hopes of determining whether it will soon pick up or will continue to slow and tip into recession.
In addition, the market wobbled during the session after Fitch Ratings lowered its rating on bond insurer Security Capital Assurance Ltd. Bond insurers have been hurt in the fallout from the mortgage and credit crises, and news of their problems has shaken the market.