Technical Picture - Backing & Filling

After four consecutive higher closes, the markets gave back all of yesterday's gains. Bad data and weak earnings prompted the lower volume retracement. Financials lead the way down. Little on the plus side except Gold.



Wasted effort on this SNDK strategy to add to the swing trade on a break of the PDH. Ended up dumping the whole thing when the markets failed to bounce off of early weakness.

Missed the first leg up on ABX. After gapping and testing the PDL, ABX squeezed back up to the PDH, consolidated and extended 50% in the afternoon.

Base and break the NASDAQ futures. I was a little too confident of a gap fill lower and stayed in the second half too long. Should have had a stop at the 50% fib. level, but I didn't.

Technical Picture - Stimulus Induced Breakout

The market broke out of the box with a gap open and extended into midday. After a sideways drift, the market established new session highs prior to, and shortly after, the Fed, before succumbing to some choppy profit taking followed by a late push into the close.

Triggering the broad based push off the open was word that the government is working on a plan to help banks dump toxic assets. This would help banks protect against losses stemming from asset write-downs.

Broad based rally with Finance pacing the way + 13% and gold/silver on the losing side.