Tuesday, August 9, 2011

SPY - the stars align for a end of day buy

Posted this comment on the Trader-X blog earlier today:
SPY - 5min, buy above 15:35 for the following reasons:
* Was above vwap, and 5ma crossed over earlier [VLCO setup]
* Around 25 minutes of consolidation (refueling after a big move from bottom)
* Broke above the 100 ma
* 5ma was rising and supported price
* Green hammer-like bar says, "You are clear for take off"
I can't say there was anything convincing enough for me to attempt to buy at the bottom, but catching potentially half of that late day monster move isn't too bad.

Unfortunately, I wasn't around to even consider taking the trade. My TradeStation charts were too sluggish, likely due to all the volume.  So I wimped out and played it safe by leaving while I was ahead a little bit for the day.

Very volatile day.  We'll see if the party continues tomorrow...

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