Costanza Mode
Are there any buyers in the house? The
market is in George Costanza mode. For those of you not familiar with that mode,
it is the complete opposite of what normally happens. For the last decade, most
of us have known nothing but upward pressure on stock prices, buying every
pullback and being rewarded. Now we have the opposite market. Every rally is
sold into feverishly. How long will it last? Not sure, but it appears that a
crisis of confidence has hit our markets, and that is not good news. As I have
said before, one big capitulation is better than death by a thousand cuts. A
quick look at the one- and five-minute charts of the S&P futures from
yesterday will clearly show the orderly decline in the market. Normally, you
would have many countertrend moves allowing for reentry points (HVT).
Yesterday’s action was ideally suited to a trend/swing trade approach.
Nonetheless, opportunities exist. Know your levels and do not hesitate on
entry points. The moves are very quick and choppy, so “thinking” about
placing a trade is the wrong approach. With the launch of The
Floyd Numbers yesterday it gives traders an opportunity to increase your
probabilities on a per-trade basis. Whether your are “scalping” (HVT)
or swing trading, the numbers will help. I have included some charts below
indicating levels that were determined before yesterday’s opening that offered
the nimble and observant trader great setups. TradingMarkets is offering
a Free 1-Week Trial, click
here for more info. I encourage you to send me e-mails with comments and
questions on this service. My goal is to assist you in any way I can so that you
can implement these powerful tools into your trading plan. For subscribers,
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traders.
Novellus
(
NVLS |
Quote |
Chart |
News |
PowerRating) is charting very
well right now and showing some great technical levels. Keep an eye on 37.46 and
38.54.
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| 1027 | 1155 (confluence and solid resistance) |
| 1023 (opening hour only) | 1140 |
| 1019-22 | 1117-22 (confluence) |
| 1013 | 1100-02 |
| 1008 (confluence and contract low) |
1089 |
| 1001 | 1054-58 (critical level of support) |
| 990 | 1034 |
| 978 |
As always, feel free to send me your comments and
questions. See you in TradersWire.