Market Opinion for the Trading Week 21 Jan to 25 Jan 2013
Have fun trading : interesting, amusing or entertaining accounts on trading !~Recap on last week
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| SPY - 5 Days |
Last week was fun =), went to thailand, bangkok first holiday trip for 2013 and 3 more holiday destinations to accomplish this year !
May 13 : Taiwan (next)
Sep 13 : China
Dec 13 : Japan
I m so inspired by the lifestyle of traveling and trading here and there during the trip to make up some of the shopping expenses =) and ultimately entire trip paid for from trading with spare to invest. As mentioned in my previous market opinion post - sideways to the upside, I was very near ^ ^ looking at the above. It was moving sideways to a little upside and once it break the 147 mark, woola people on the sideline gain confident or should I says become greedy, thinking phew we past the safety line and its time to party.
Accuracy : 1/1 100% (that so nice 100%, wahhahaha let's see if i can hit 100% for 5 consecutive weeks)
Check out the weekly candle stick pattern. What's your feeling of the candle ? I would say still bullish, no sign for strong bears yet. Since it breakout the 52 week high, people who have been on the sideline waiting might turn greedy and its time to jump, buying the high. Like a pyramid effect, people who went in first, waiting for greedy money to push the high to a higher high and take their profit and run. And those who run too late, it's payment for your lesson. There will also be another group where it's at the high, they wanted to wait but it move higher. Fear of missing out the ride, they gave in to temptation and got caught in the higher high wave.
It probably come back to test the support line in the next few session.
Similar to previous post except that it break the 52 week high. Or breaking the ascending triangle pattern earlier.
What's ahead for next week ?
Economic events
21 Jan - Bank holiday, market closed.
Not too much economic data which is good for the market and price. Everything is factor into the price. Proper sense of the market without much confusion.
Remember the scenario, if you are a market maker for SPY,
"Remind me of another lesson, 95% of the world money is hold by the top 1%. And price move in according to how the money flow. So if you are the top 1 % how would you put your money knowing that the market can move up, down or sideways. If you are a market maker of SPY, how would you set the traps ?
1) make it appear that the counter is hitting resistance, loose steam and attract people shorting follow by a reversal push triggering their stops
2) make it appear that the counter is going strong breaking the 52 resistance, attracting people who want to buy it higher before reversing it to trigger stops probably just below the latest support level. After that sending it back again for a bullish Jan
3) Combination of 1 + 2"
Looks like scenario 2 is on play, let's wait a few more session to see the full plot.
Volumes might pick up as there's not too much economic data plus again Chinese new year coming in a few weeks. People are still on buying spree, I wonder if US celebrate Chinese new year or there's a public holiday in the state during Chinese New Year.
People, are looking for new furniture big tickets items), new clothing to welcome the new year. Hong bao for younger generation as a blessing which in turn the receiver will spend it. Though most of the consumers are chinese, they buy products/services from all over the world. This encourage business in general.
Like for myself, my family is looking to get a new piece of LED Smart TV which can easily cost a few thousands.
Opinion of the Market next week : Up and sideways
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