Yesterday was a bad day for global economy with Euro zone, France, Germany, China, and USA; all showing contraction but US stock market still managed to move into green territory at the close. Also the jobless claim ticked up but the headline sounded better then the reality. Last week jobless claim was once again revised higher and this week expectation was also revised higher from 375k to 385k. So the headline showed jobless claim falling to 3k instead of showing rise. The other issue with this abnormal market is that its able to move above 200 ma after every sell off. For 1 point drop in the dow jones, it has moved higher by 1.5 point.
It doesn't matter how bad the economy data is coming out or how companies are cutting guidance, stock market is on the roll up. Yesterday Bank of america announced 16000 job cut out of 30000 job cut its planning under new Bank of america program.
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| Dow jones managed to move above 200 ma Next level to watchout is 13606 followed by 13618 |
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| Dow jones abnormal spikes at the end of the day. |
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| Wait a minute, the spike was also at the open. Which spike is bigger ? |
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| TIBX in bearish zone after missing revenue but beating expectation. But it will find support at 28.50 followed by 28.36 |
It is also a quadruple witching day. Quadruple witching occurs when the contracts for stock index futures, stock index options, stock options and single stock futures (SSF) all expire on the same day.
This event takes place 4 times a year on the third Friday of March, June, September and December. Quadruple witching has been positive and since stock a market ended flat the chances of short squeeze has risen. I still expect pullback at the close.
Watch following level for buy and sell:
1. Buy Dow above 13606 but sell below 13582
2. Buy S&P500 above 162 but sell below 1459.
3. Buy AAPL above 702 but sell below 698.23
4. Buy ORCL above 32.33 but sell below 32.
5.Buy VXX above 8.85 but sell below 8.77
