Pimp My Trade

Daily Outlook

Posted on February 11, 2009 by Adam

Good Morning Traders,

If you haven’t wished the market luck this morning, you’re either sadistic or short. Either way, you can still enjoy the musical stylings of Toto.

If we can hold the line (***musical interlude***), that is, stay above S&P 815, then it looks like investors are buying the pullback we saw yesterday.

In my personal opinion, I think the reaction yesterday to Geithner’s speach was overblown. In reality, the market doesn’t care what I think, so I’m watching very carefully to see how we trade this morning.

If we are still making forward progress by 10:30 ET, then I’m going to add a long position. I bought calls on a semiconductor company yesterday, because I love the relative strength in the Nasdaq. I might look to get long something in the basic materials space here.

Use the Finviz heatmap to identify hot sectors.

Look at where the Finviz heatmap lights up

If we trade down to S&P 815, we go on a sell signal, and I get bearish.

Happy Trading!