Market showing weakness or strength?

Clearly market is finding a lot of resistance at 200MA. Whenever market touched the 200MA, it sold off. But it also found out a lot of dip buying. Hence in the past three days, we see the market hanging around and going nowhere even though there are a lot of intraday volatility. Some continuing sideway move or retest 20ma is the best scenario for the market. In this way, it will gain investor's confidence. A lot of investors staying sideline now will see the market strength. Once they join in, we will see 200MA being overcome decisively. Maybe it will happen on this Friday when European banks gives out good policy or next Tuesday when FED comes out a QE3.

I hate to say I made another silly mistake again today. I made a very good trade into a losing trade. Yesterday I longed SWC at 11.20, then it went up to 11.80 in just one hour. Today I was stopped out at the lowest 11.00, then SWC flied without me to 11.65 again. It seems that I know when or how to long stocks with short term momentum, but I just cannot exit well. The day trading restriction really limit my trading activity. I do not want to use my day trade chance yesterday. It turned out to be so bad. I wish I had $25000 capital.

I was frustrated with myself today. Then I made a very risky trade. Even though it turned out to be very good, I am still quite fearful. I longed naked Dec SPY 125 call for $2.94 at 1:36pm around spy=126.30. The reason I did this is that I saw a lot of buying volume in the past half hour while very little selling. As I could monitor market closely this afternoon, I gave myself a try. After I bought it, the call went down as low as 2.81. I was about to cut loss. Then SPY formed a nice intraday cup and handle, then shoot up at 2:35pm. I feel lucky for this trade when I closed it at $3.30. At the beginning, I knew this was going to be a day trade. Hence I did not worry if keeping it overnight. From 3:15pm, market had a hard reversal sell off. It went down below my entry price. If I did not take profit to do day trading, another tragedy similar to SWC trade would happen. I would blame me myself again and again today. In today's market, people still did not trust market would go upside much. They played very cautiously. They buy in dip then sell at resistance. That is the current rule until market make decision move to either upside or downside.


Some long setup: CB CVBF HANS ONTY

RGLD PH LGF PXD COG

Short idea: TSO