Does It Have Legs?
Does it have legs? While last week’s
incredible run was hard to believe simply due to Cisco pulling yet another
engineered earnings numbers out of their hat, yesterday’s Retail
Sales Number was solid. It did not matter how you looked at it, the
consumer seems to be hanging in there, contrary to many projections, mine
included. The market needs more positive data to go from here, but for now, the
1046 level, looks like a bitter memory.
Yesterday was certainly a patented “Gap & Crap” from an HVT
standpoint. I was speaking on the phone with a colleague of mine around 8:00 AM
PST, he asks: “Done for the day?” The answer was: “Yes.” I
saw only two to three other quality HVT
setups, and that was in the afternoon session. The majority of the day was spent
looking at setups on longer-term time frames (5- and 15-minute bars) since sharp
volatility spikes in the futures were nonexistent.
Unfortunately, I don’t expect any major changes today either. Morning
reversals seem to be where the most bang for the buck is taking place. The
mantra remains the same:Â
“Trade assertively in the first hour and take
the ‘show me a real good reason to place a trade’ for the remainder of the
session.”
Go back to yesterday’s
column, specifically the KTNs.
The highs more or less in the S&Ps (1099) and Nasdaq (1615) were pinpointed
before the opening yesterday. Knowing these numbers in advance is an edge. Not
only do they offer potential setup areas, but ideal areas to consider exiting an
existing position.
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| 1130 | 1364 |
| 1124 | 1347 |
| 1111 (key resistance) | 1333 |
| 1096-98 | 1320 |
| 1080 (confluence) | 1298 |
| 1071 (confluence) | 1288 |
| 1063 | 1268 |
| 1237Â | |
| 1206 |
As always, feel free to send me your comments and
questions. See you in TradersWire.