Stocks & Commodities V. 23:4 (98): At The Close by Jayanthi Gopalakrishnan
So far, the 50-day moving average on the Standard & Poor’s 500 chart has been acting as a good support level during February (Figure 1). Not only is it acting
as a support, it has also showed signs of a slight upward bend. This tells me that I should only go long when trading the e-mini contract. Now it’s a matter of
waiting till the right opportunity comes.
On February 16, 2005, at around 11:07 am (PT), I noticed an increase in buying enthusiasm, but that quickly faded. That was unfortunate, because for a moment I thought my original plan to trade at around 11:00 am (PT) might still be something to capitalize on. Twenty minutes later, I noticed a similar scenario—that is, a buying frenzy followed by a quick selloff. . .