Anything But Normal
While it is
safe to say that yesterday’s headline for my column was a bit
ambitious, it was a logical assumption to be made. (“See You At The Trough, Say Around 9:30
AM EST?”) Nonetheless, trading was decent, but
let’s just say I grazed lightly, rather that making a pig of myself on the
keyboard. Based on my approach and several of my colleagues, it was the right
way. I found the moves yesterday to be very labored, not the usual quick spikes
that I prefer.
Yesterday was a
day to put on a position and sit. As a result, the bulk of the great trading
ideas came from slightly longer- term charts, mainly 5- and 15-minute. Several
of them were highlighted in my nightly service, and they paid off nicely. Unless
tomorrow brings a radically different trading environment, I expect that will
pretty much be it for the week.
I have already told my wife and son (he does not listen yet though, probably
won’t later come to think of it) that we will be at the marina and on the boat
by 10 AM on Wednesday and will not leave until Sunday. I trust all of you will
be getting a jump start on the holidays as well. These last couple of weeks have
been tiring, but rewarding. So, like me, reward yourself this weekend and come
back fresh and ready to go. Despite being in the thick of summer, I have a
sneaky feeling that it will be anything but the usual summer trading.
I came across
one potential nugget on the downside last night, so I figured I would share it
with you. It is what I consider a very reasonable short setup, off of an hourly
chart. In this case it is United Health Care
(
UNH |
Quote |
Chart |
News |
PowerRating).
With regards to
the HVT stocks, I think the gold stocks
might actually be resurrecting themselves. Several put in very nice bottoming
patterns on 15- and 60-minute charts. Gold Fields
and Harmony Gold actually sprinted higher.
Based on this price action it appears as though investors/traders are getting
jittery again as the stocks market flirts with last weeks lows and the constant
threat of more bad news from somewhere. So, while these stocks are not exactly
the best stocks for HVT, they do move quick
enough and opposite of the futures, allowing for you to benefit by being long
gold and short some other stocks or the futures simultaneously.
Key Technical Numbers: (futures)
| S&Ps | Nasdaq |
| 982.50 | 1065 |
| 1036.5 | |
| 969.25 | 1018 |
| 958.50 | 1014 |
| 956.50 | 995 |
| 945.50 (contract low) |
971 |
| 952 |
As always, feel free to send me
your comments and questions. See you in
TradersWire.