'Trading is a process of observing the market's action until such a time you can find and form trading ideas and get involved.'**

Tuesday, January 18, 2011

Observe & Trade




A mixed reaction from the core index market today.

DIA (YM) made a nice upward movement in the open and formed a bull flag at 10:00 am.

QQQQ (NQ) open below the previous close but made a triangle formed like for a bullish signal.

SPY (ES) was a little bit choppy and was not a good index to trade today.

Russell 2000 made an ugly move early but recovered late in the close.

Based from observation, there are tradeable pattern today but with cautious play.