Long from 938 - hit 941.25 high - Raise stop to breakeven

3:49PM

BUY a drop to 938 as of 2:38PM

Risk 2 pts.

Target 4 pts.

939.50 last.

10:24AM - BULLISH environment to buy today -

Nervousness abounded in the first 30-60 minutes -

With the S&P now revisiting the lower end of today's range, I believe this is a low risk buying opportunity.

Buy here - risk 3 pts - target 4 pts.

12:04PM

CLARIFICATION

The first hour of trading showed strong sell interest and may be a sign of a short term bottom for today. The way to trade this is to wait for 3 hours and be assured the sellers are not still in the market, which is the reason for the "REVERSE AND GO SHORT IF STOPPED OUT" at 927 (from long position at 932). If the market can break to 927 then I will presume the sellers have the upper hand for the day and we should go with that trend and once again, risk 5 pts in order to make 7. Once short, lower stops to breakeven after 30 minutes if still in the position.

Background noise today - Crude oil is down and that is weighing on the S&P. The S&P and crude are still tightly correlated, unfortunately. Bernanke is testifying so that has the market 'on hold'.

11:56AM

New Buy Signal at 10:30AM is an hour old - but still valid

Strong indications of fear suggest a tradable bottom for today:

BUY

Risk 5 pts (reverse and go short if stopped out)

Target 7 pts.

Raise stop to breakeven after 1 hour.

932 last.

Buying opportunity - Risk 5 pts - target 7 pts

ESM9

Strong call selling is indicative of a "wall of worry".

Buy this dip from 949 to 944.

Risk 5 pts from entry.

Raise stop to breakeven after 30 minutes.

Comments on Yesterday's Action

Monday, June 1, 2009 -
I witnessed the first bearish activity in the market rally so far -
I will see how this translates into market action today -
Call buying on the price rally is a sign, short term, that we could see a reversal to the downside.
9:28AM
Tim West