The Daily Dose of Trading Comments

It comes and it goes. Not much of a bump up on the expected bounce intraday so I exit the long at a push and look to the short side again. The NDX has broken an important short term trend line that has held prices higher for the past two weeks. The SPX, NASDAQ, and DJIA are close to breaking theirs. This may mark the beginning of a retrenchment as the NDX led up and should lead on the way back down. I've taken a little NDX exposure short that I intend to hold now after the bell. TXN reports after the bell and that could cut either way but like INTC, it has ran up for a long stretch into earnings. Don't know if it will suffer as a result, but I would place the odds on that side.

I know this sounds like the same old thing ... counter trend trading, and it is. I'm staying small until we get a bigger break and on the other indexes. As I said first thing this morning, this rally appears to be running on fumes and though these trends have a way of going longer and farther than most would expect, they do run out of gas eventually. That may or may not be the case. We have some definite resistance areas to tell us we are wrong and will work with those on the assumption that we are getting a little change in character here; the absence of the late day strength. We need two or three days of late day failures so this is only a start, but a start nevertheless.