Action in the SPY this week was pretty tight. The lowest we traded was 93, and never really traded above 96, failing at the same spot we failed last Friday in the pre-market. The range has really tightened over the last 2 weeks. We were not able to close above 95 on the SPY until Friday, when we climbed above the level ever so slightly in the last few minutes of the day. Going into this next week, I will be looking for the SPY to trade either below 93 or above 96 and trade in the direction of the break.
NYSE prohibits removing liquidity into the close on Friday. Not too sure if this is just a one time event or if we can expect more of this in the future, but as traders, I think it’s important to at least know about this. There was some problems with trading in certain stocks earlier in the week, so this could be related to that.
PALM has held up well after the release of the Pre. I have been doing some research on the Pre this week, specifically because I want an Iphone or Pre on the Verizon network, and I’m waiting for one of those two to become available. But I must admit that I have been impressed with what I have been reading about the Pre. I personally think there are three things that will make it extremely competitive with the Iphone, and perhaps these are the reason we haven’t seen a sell off in the stock price following its release:
- The Keyboard – Being able to press buttons is much better than a touch screen
- The Web OS – From what I’ve read, the language the Pre runs on is Web based, so anyone with web programming knowledge can work their way around the system, as opposed to having to learn a whole knew language. I think this will also allow for new programs to come out faster on the Pre.
- Multi-tasking – The Pre allows you to open more than 1 app at once. I know that the Iphone doesn’t have this functionality, although I can guarantee they are working on it.
Trader Mike has the market working off its overbought condition. All indices are maintaining their uptrends.
The mortgage market is still frozen. Industry experts are saying that if rates climb over 5.5%, we could see a lock up in home sales, which would obviously not be good for the economy that’s trying to regain its footing.
A good breathing exercise to help calm yourself down during the trading day. I know I take deep breathes when I begin to get frustrated, and this helps immensely. Practice it and see how it improves your trading results.
