Different Strokes For Different Folks
As you are reading this column, I am doing one of
two things:
- Still sound asleep
- Just waking up and seeing what the futures are doing.
Either way, I have zero intention of doing any HVT
this morning, barring any huge move down in the futures. Why? Simple, everyone’s
trading style has its ups and downs, and right now HVT is very challenging due
to the choppy nature of the market. So while I am backing off, there are
undoubtedly others who are finding the current market perfectly suited to them.
Tomorrow will be a different story. The release of the
Unemployment Rate may certainly turn on the volatility spigot. But
for today, I will simply be observing and managing any intraday
setups that may be triggered (my orders were just entered, so no need to
rush out of bed if I decide not to). Many times, a day away from the screens is
the best therapy you can give yourself.
Yesterday, aside from HVT, offered one great setup based on a longer-term
time frame. The trade was in the S&P SPYDRs
(
SPY |
Quote |
Chart |
News |
PowerRating), but would have worked
just as well with the E-minis. The one thing the market is doing is trading very
technically, albeit on a longer time frame than HVT. The setup was based on the
hourly chart as seen below. The first bar of today had a successful test of the
38% retracement on the recent high/low. Knowing this in advance, this level was
on my radar screen. The entry was simply based on not only that level holding,
but the five- and 15-minute charts at the same time which were exhibiting very
bullish patterns. So, with a relatively tight stop loss, I went long and took
advantage of a nice upside move.
The exit was based on some analysis of the 15-minute chart. See below:
Like the entry, lower time
frame charts assist with exits. Again the market played out well technically. A
hammer (A) combined with a break of the upward trend channel (B) was the cue to
book profits.
So, until this range — 800-855 — is broken on the S&Ps, I expect the
trading to remain indecisive from an HVT standpoint, and occasionally offering
some lay-ups on a longer-term time frame, like the one mentioned above. There
are several stocks I am watching for good short setups if this market begins to
breakdown. These calls are based on looking at 15-, 30- and 60-minute charts.
The list is seen below. As noted in earlier columns, I cannot give specific
entry points. Subscribers to the nightly service are furnished with that
information.
| Intraday Setups |
|
|
|
|
| Stock | Action |
| MO | Short |
| WYE | Short |
| MDT | Long |
| BJS | Short |
| FDX | Short |
| MCHP | Short |
| ERTS | Short |
| KLAC | Short |
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| *858* | *881* |
| 852 | 864 |
| 847 | 851 |
| 841-42 | *848* |
| 830-32 | 830 |
| 825 | 817 |
| *817* | 795 |
| 806 |
* indicates a level that is more significant.
As always, feel free to send me your comments and
questions.