Momentum Trader Report: 03/23/09

I wrote last that a pullback was expected here, but of course, the market often does what is least expected. A very big day in the market, with the S&P 500 up over 7% today! As seen here, the S&P 500 blasted through its 50-day MA and closed well above it.

The market is very overbought here, but shorting this market has damaged more than a few accounts.

There were two triggers from the Watchlist. Truthfully, you could have bought anything at the open and there’s a good chance you had a winner. Let’s look at the two triggers.

Oil moved higher today due to a weakening dollar. That was good news for last weeks trigger, USO.

I am expecting a pullback soon, and will keep trades short term. The next pullback may offer a buying opportunity.

Trade Ideas for 03/24/09:

Buying is a bit risky here, so only considering buying these in ideal conditions. A pullback could be sharp, and if it happens tomorrow, I will pass on these if they trigger.

Good luck and good trading!