A Resilient Market
Resiliency,
the only word to describe yesterday’s price action. After the initial
downdraft on the heels of the American Airlines
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crash in Queens, NY, the market marched higher for the rest of the day. The
S&Ps chopped around a key level, 1107 (KTN)
for a while before intiating a long leg up to 1122. Again, given the fickle
nature of the market lately, the KTNs have proved invaluable for me intraday,
allowing me to pinpoint entry and exit points.
(
$INDU.X |
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(
SOX.X |
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index were what stood out to me yesterday. The Dow, trading briefly below its
50-day average only to power back through and close down only 50 points, and
the ever-resilient SOX which put in a 2.5% gain. It appears as though the SOX,
despite what pundits say, continues to be the tail that wags the proverbial
dog.
Technology
(
MU |
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PowerRating), offered three decent setups as denoted by
letters A, B and C, and traded in lock step with the S&P futures. As
I mentioned last week, the market is undergoing such extreme sector rotation
intraday that it forces traders to be trading different stocks throughout the
day. Get familiar with one or two stocks in each sector so you can easily move
in and out, as market conditions dictate.
chance to read Larry Connor’s interview this past weekend with Michael
Steinhardt, do yourself a favor and read it. I am a big proponent of
always being prepared and giving 110% at all times, while this of course is
nothing new, this interview will force you to rethink exactly how much you
currently give and how you can achieve even more, by raising your standards.
It appears as though the
overnight developments in Afghanistan have a given another dose of optimism to
the futures markets. Both the S&P and Nasdaq are up substantially in the
early going. Keep an eye on the recent swing high of 1137.5 in the S&Ps and
1586 in the Nasdaq.
Key
Technical Numbers
| S&Ps | Nasdaq |
| 1151-53 | 1629.75 |
| 1142 | 1593-95 |
| 1138 | 1563-64 (confluence) |
| 1130.5 (confluence) | 1551.7 |
| 1127 | 1536 |
| 1119 | 1510-11 (confluence) |
| 1111.93 | 1493 |
| 1107 (has been a key number) |
1476 |
| 1100 (confluence) |
As always, feel free to send me your
comments and questions. I will be in TradersWire
periodically today.