As A Daytrader, Here’s What You Should Look For In This Holiday Trading
What Monday’s Action Tells
You
The SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) at 1194.66 ended the
day
at +.44, while the Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) was +12 points at 10,662. NYSE volume
was
1.42 billion shares, with the volume ratio as neutral as the major indices
at 48
and breadth just -33, so there was nothing discerning about the
internals.
Technology had some small selling pressure of
sorts, as the
(
QQQQ |
Quote |
Chart |
News |
PowerRating) closed at 39.20, -0.7%, while the Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) was -0.3% to 2128.
In the sectors, the
(
SMH |
Quote |
Chart |
News |
PowerRating) was -0.8% to
32.21
with the drugs continuing their FDA and deal noise at -1.7%.
(
XOM |
Quote |
Chart |
News |
PowerRating), +2.5%, and
(
GE |
Quote |
Chart |
News |
PowerRating), +1.0%, two of
the
major holdings for most big mutual funds led the Dow and will be held up
into
year-end. Other key major energy holdings that advanced were
(
CVX |
Quote |
Chart |
News |
PowerRating),
+1.6%,
and
(
SLB |
Quote |
Chart |
News |
PowerRating), +1.3%.
After the early green futures, the major
indices
reversed their opening and went trend down into the close. There were three
QQQQ
continuation short entries below the 20, 60 and 240 EMAs down to an intraday
low
of 39.09 and closing at 39.20. There was similar price action for the
(
SPY |
Quote |
Chart |
News |
PowerRating),
(
DIA |
Quote |
Chart |
News |
PowerRating) and SMH.
The market action now has the holiday
crosscurrents with some erratic trading, so as a daytrader, you need price
to
make some reactionary moves to price levels that have some
symmetry/confluence.
For example, the SPY closed at 119.47 with one of those levels at 119 –
119.06.
Yesterday, the SPY bounced off 119.16. 119 is minor support, while 119.06 is
the
20-day EMA and also a retracement to the previous swing point low at 117.73.
These are minor levels, but you need some measurement to evaluate price
action
at a level as a daytrader.
The QQQQ has some confluence between 38.35 –
38.90. Also, it is in an RST zone on the 60-minute chart, so that is an
initial
focus today. There are no significant decisions to make right here for
longer-term positions. Just let the year play out.
Have a good trading day,
Kevin Haggerty
