THE VOICE OF TRADESTRONG MANAGEMENT

MARKET MATTERS - MONDAY'S MID-DAY MEAT

As predicted this morning the market firmed up and traded above the VWAP and the high of the opening range, and is now consolidating, forming a bull flag at the 200 MA on the 15m chart. For those who got long, you can take all of your profits now for a quick trade, or you can wait and add a smaller unit to your position, if the market takes out the 200MA on good volume. I would start to scale out around 1081.50-1082, which is the R2 pivot and the high of Friday's value area. Relative Volume, A/D, and Cumulative Delta indicators are not highly correlated with the market's rally, suggesting that short term players are the ones driving us higher, and indicating it will be difficult to sustain the rally. Although, the market could trade higher, there is a 90%+ probability, based on range projections, that this area will be the high of the day.