TCM Notes : 7/15/09

• I've been focused on CIT this week. Monday and Tuesday offered tremendous trading opportunities as Fibonacci retracements provided support and extensions offered realistic targets for long based trades. Well the volume is still high today, but dying down compared to the 200m, and 150m share counts Monday and Tuesday.
• The market itself has enjoyed more positive earnings out of a few stalwarts, and is reacting by doing the opposite of the consensus view. That head and shoulders set up that was so obvious to all is now proving to be a pain for those that were heavily shorting those levels. Buy stops have most certainly been run on these guys and a squeeze has ensued. I guess this is why the rule on shorting a head and shoulders set up is to WAIT for it to break the neckline.
• Haven't added anymore OCN as it has popped 5% from our buy point. I will pyramid up in this trade, but I will only do so at the 50dma. That currently stands at 12.52 today.
• One positive developing today is the reclaiming of the 50dma by many names.