TCM Notes : 6/5/09

• The Dow closed above it's 200sma Thursday. And that rounds out the lot of major averages getting to, and above this bogey. Now the trick will be if they can maintain above this level. There's an article in the shared items section that talks about how fast the 200sma is still falling. The way I see it you will have a bull cradle, a golden cross, and whatever other bullish crossovers are eminent as the shorter duration averages cross up though the 200. These types of crossovers generally provide sharp upward moves. The type of moves that will have those under invested cursing, and those whom are short cursing even louder. Overbought conditions will become more pressing at that point, and a confluence of a whole bunch of other macroeconomic factors may assist in leveling off the markets trajectory at that point. Ah, but the 200sma should be beneath us providing adequate support then. And the potential for still worse economic news could persist, but a safer investing environment may still very well be locked in place. I guess we'll just have to continue trading it long until it bucks us off.
• Added more UYG at 3.96 in Wednesday's session. It had a close above it's 150sma Thursday by .02. 4.24 was the 150sma for the 6/4 session.
• This INTC bid for WIND is driving some to place bets in the August 12.50 calls. There's always the chance of a higher bid, so the thinking on the trading desks goes. Oh how they love to speculate!