Cheerleaders Sent To Sidelines, Again
It appears as though reality is once again setting
in as the major indices are indicated lower once again. Yesterday’s
decline on the heels of Wednesday’s selloff after the initial burst to the
upside must certainly be disconcerting to those who have once again been lured
in by the BS rhetoric spewed by Wall Street.
Unfortunately, this decline in the indices has not been accompanied by big
volume. In fact, volume remained below average for the nineteenth day in a row.
This has resulted in very few HVT
opportunities intraday. It is very frustrating to say the least, but there is
not much you can do. As was the case in early spring, when HVT was not
real active, you need to adjust. For the last few days, I have pushed my time
frame out to taking setups off of five- and 15-minute charts. The chart patterns
I look for are identical to the ones I look for on a one-minute chart, you just
need to be more patient in terms of letting the trade play out. It is not my
preferred approach, however, it is what keeps me in the game until some
volatility comes back into the market.
That being said, there are some economic numbers out today which should leave
more clues as to the strength, or lack of, in the economy. I am keeping my
fingers crossed that whatever the result, it brings in some heavier volume. The
Michigan Sentiment number is out at 6:45 AM PST. The market is
looking for a reading of 88. Any significant deviation above or below will
provide some excellent volatility spikes. It might be just what the doctor
ordered, let’s hope. If it is not, I am going to continue to sit tight and wait
for better trading opportunities. In order to succeed at trading, you need to
know that it is OK to do very little or nothing.
The S&Ps are at some key levels, so be on the watch. The first target I
see is 875, then 868 and 860.75. Upside targets are seen at 895. On a lighter
note, it seems as though every time it appears as though the sky is about to
fall or the horizon is a real dark gray, the market throws you a curve ball, so
be on the lookout and make sure you capitalize if the market mounts a reversal.
I have received a lot of questions on The
Intra/Multiday Setups that I have been providing here for the last
few weeks. I am not able to provide you with specific entry points and such (I
do in my
nightly service), but you
should be viewing these as setups that I have identified on 15-minute and hourly
charts and implement them when and only when the overall market is moving in
that direction. Â
| Stock | Action | |||
| CCU | Short | |||
| VIA.B | Long | |||
| LEH | Short | |||
| EBAY | Long |
So for today, my stop entry on the longs will probably not be initiated, as a
result, focus more on the short setups unless the overall direction of the
market changes dramatically.
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| *903* | *952-55* |
| 894 | 942 |
| 892 | 936 |
| 886 | 930 |
| 879-81 | 920 |
| 872-75 | 905 |
| 867 | 892 |
* indicates a level which has more significance.
As always, feel free to send me your comments and
questions. See you in TradersWire.