7.27.2006

DUMB


The negative tells for the long DIA trade were:

1) lousy naz internals

2) poor action in the IWM

3) oversold levels in the VIX/VXO indexes

4) oils hitting their highs on the open and retreating all day

5) poor action in the biotechs

6) overbought 2 day RSI levels on the SPY/DIA

The positive tells:

1) positive action in the semis

2) positive NYSE internals (then)

DIA could still ramp into the end of the day, but that doesn't make it a good trade. It should never have been entered.

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