A Broken Record
A broken record. That is what the market
feels like, the price action is so muted, and regardless of the news, the
volatility continues to escape the market. Even with the big sell-off we had, it
was done in a step-like fashion, as opposed to quick volatility spikes. Luckily
there was the “debacle du-jour,” Bristol-Myers
Squibb
(
BMY |
Quote |
Chart |
News |
PowerRating), which basically made my day. Â
The initial move off the opening print was great on the short side. Whenever
a stock gaps down, in this case almost $7.00, naturally the specialist is going
to take the stock up a bit. Unless you were insightful enough to have bought the
opening print, don’t chase it. Rather, wait patiently for the opening price to
be broken and try to establish a short position. If you managed to pull that one
off, you were rewarded with a quick 50 cent drop to the downside, only to be
followed up with another short-sale opportunity a few minutes later which took BMY
to the lows of the day.
It was a pretty ugly day over on the Nasdaq, as that index broke through
three support levels. Granted, it was on low volume, but the fact remains, it
has some ground to make up.
This is becoming a common theme, trading the story stocks while
simultaneously juggling a few positions based on 15-minute and hourly charts.
Whatever gets you through.
The release of the LEI report at 10:00
a.m. EST may offer a quick volatility spike, so keep your eye on the TV or
newswire. The market is looking for 0.1%. Any significant deviation from that
number, and I will be trading very assertively. Also, the FOMC
will be releasing their minutes from the January meeting at 2:00 p.m. EST. This
may be a non-event, but be alert nonetheless.
Key Technical Numbers: SOX
| 593.86 |
| 585 (confluence) |
| 581 |
| 576 |
| 563.94 (key support) |
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| 1188.4 | 1522 |
| 1177.05 | 1505 |
| 1165 | 1501 (key resistance) |
| 1160 (confluence) | 1491 |
| 1154 (confluence) | 1462-67 (major confluence) |
| 1143 | 1437 (critical support) |
| 1136 (key support) | 1426 |
| 1131 | 1407 |
| 1126 |
With just over a month to go before the launch of Single
Stock Futures (SSFs), I will be starting a four-part series beginning
on March 22, the first part of which will address the following:
Section 1:Â Why I will be trading SSFs.
The introduction of SSFs will be a very exciting time for traders. They will
not only offer a new avenue for traders, but more importantly, offer a nice
complement to what many traders, including myself, already do.
As always, feel free to send me your comments and
questions. See you in TradersWire.