As suspected the NASDAQ broke out of its inside day and tumbled lower. Friday she closed on the lows which could be scary for the Monday open. We are still on the sidelines. We have a signal that tells us that a bounce is coming. This could have late morning Monday or Tuesday. We will look at the trigger zone for possible shorts off the bounce.
We mentioned this pattern before (Just Saying...see below) and the neck line has broken. If this pattern plays out we could see a visit of the 2012 support area which falls in line with the measured move. It would be a monster move but...Just Saying. ;)
We are over sold down in this area and looking for a small bounce into resistance. We will look for a shorting opportunity at the watch zone. NO TRIGGER, NO TRADE!
We are over sold on the current down move. If you are short, it may be a good idea to tighten stops or cover positions. We are looking for for a short term bounce in the Indexes over the next two trading days...but only a short one.
If 4588 gives way on volume then 4475 will act as a magnet. Keep on the watch list.
Keep and eye on your weekly chart. If Santa can't find his rally cap then the neck line cometh
What a difference a day makes. Just when we were looking for a short (which we got) the very next the market recovered the previous days losses an then some. Was it news driven (Draghi or NFP) or is this a sign of major consolidation before a break out in the first part of January? Time will tell. However, you will need to be tactical for now...positions are...
The Nasdaq is breaking new high and the Russell and is not even close to new highs. We posted this weekly chart a week ago...is this a clue?
Tech is defying gravity. The Nasdaq broke new highs today while the Russell and S&P lag. The question begs...will the the other indexes catch up or drag the Nasdaq down? No shorting for us in these areas. We will see if we can get a break and close below the up channel (or green line around 4675)
What does this book tell us? Just saying! Time will tell.
We are still looking for pullbacks on the $NQ. For that matter you look to the $ES and the $RJ for the same. However, we like the $NQ and will look for the Trigger Zone to get long. The market is in dire need of the pullback and hopefully will give us the opportunity. We WILL NOTE chase at the thee levels. Be patient...the players that be are hell bent on...
We will be looking for any type of pullback in NQ this week. It is clear to us that she wants to test the all time highs and with Apple reporting earnings on Tuesday after the bell it could happen sooner than later. WAIT FOR A PULLBACK...don't chase at these levels. We may not be able to get on board and that is trading. So we will wait to see what Monday and...
We will be looking for a long entry on the E-mini S&P in the trigger zone. We could get a nice move off the trigger zone. However, we will keep a tight leash on this. Earnings have been dismal at best which may place pressure back on the the market. Remember: NO TRIGGER - NO TRADE!
The Indexes continue to sell and are in need a of a rest or snap back. We WILL BE HOLLDING OFF on shorting bounces. Rallies can be violent so we will wait to see how far we bounce. There are plenty of good opportunities setting up in GC, E6 and CL. No need to force a trade. Patience pays!
We have covered the last leg of our NQ trade. It was a solid trade. Understand that when markets are selling off the snap back rallies can be violent and quick. Today's afternoon rally was enough for us to cover per our plan. For now we will watch the NQ, ES and TF for more opportunity. Trade well.
As we creep closer to our second target we are pulling stops to Break Even plus 10 to lock the trade in. We are fairly confident we will see target number 2 early in the session today. Regardless, we want to manage the trade properly. Yo never know when the PPT will swoop in to save the market. ;) Trade well!
We are short the Nasdaq from our post last night. We have set out stops and trigger. While this chart doesn't show it we hit our first target. We will leave stops in the same place and see if we can get Target #2. Stay Tuned
No further trades popped up this last week in the Nasdaq and we are 3 trading days away from FOMC. Aunt Janet will make the market move but it's a crap shoot as to which way. There is plenty of speculation surrounding the rate decision but do not get wound up in it. We will sit on the sides lines and see how the market closes after the announcement. Expect...