The S&P and the market had a strong day even though the volume was almost 35% below the 90 day average. The S&P did however manage a move above the 20 and 50 day moving averages so you have to respect that. We will see what the rest of the week brings, but I find it impossible to chase anything here. Stocks need to set up and they are not giving anyone anytime. 1230 may be the next upside target.
Europe announced a plan to get a plan about saving their banks and the market rallied as more shorts were squeezed. CBST and QCOR triggered but TZOO was a gap near the open and I took it off the list. I also removed ZSL from the P&L as silver rallied.
The most frustrating trade of the day was my long in FAZ later in the day. We entered around 57.20 but shortly thereafter, news was released about a possible settlement by the banks regarding the foreclosure situation. The financials immediately rallied and took out some overhead resistance. The news came out of nowhere and this sometimes will happen and it is possible that XLF could rally to the 50 day resistance which is around 12.62. XLF closed the day at 12.44. We may have to take our medicine in the morning, so we’ll see how that one goes in the morning.
Unless you were leaning very long over the weekend it became tough to make money today as the S&P gapped up 22 handles and then added another 10 handles in the next hour. The index literally flat lined for the next four hours, then had an explosion to the upside over the last 10 minutes of trading.
There aren’t any new names tonight and I will see you guys in the morning.