Here’s A Potential Short Setup For You
I will be the first to admit that the price action
is rather peculiar. Yes, for the most part the technical patterns are
playing out, but the range is certainly not allowing the market to “breathe” and
flex any muscle. Was Thursday’s run-up after the lower opening a sign of
strength, or should we discount it due to the light volume and the fact it was
ahead of a holiday weekend? I can easily agree with either conclusion. But, for
HVT, as we all know, direction is not terribly important, range and liquidity
is. I am sad to say we are still lacking on both fronts. But like all things,
they come to an end. In the meantime, I continue to play the slightly
longer-term setups.
Nonetheless, the opportunity still exists intraday for
HVT to loosen up. Naturally, around key
inflection points for the S&Ps is where this will occur. The one ace in the hole
I keep waiting to develop is a decent and robust selloff. The fact that the S&Ps
are not able to take out the highs from April 7 is a bit odd given how the
market seemingly grinds higher each day, but the fact is the market just
continues to move sideways when you look at 60-minute or longer time frame
charts.
So regardless of direction or lack thereof, we always need to come up with a
game plan when things unfold. I suspect that if either of the levels indicated
in the chart below are traded, there should be some decent follow through.
One piece that we cannot leave out are the tech stocks, in particular, chip
stocks. They have led the market higher, and if they continue, we could get an
air pocket to the upside. Take a look at the proxy for these vehicles of
speculation, the Semiconductor Holders (SMH). The
beautiful thing about the chip stocks is that they move like a son of a gun.
And for a potential setup which is non-HVT
related, keep an eye on Hasbro (HAS).
| Support/Resistance Numbers for S&P and Nasdaq Futures |
|||||||||||||||||||||
|
I apologize, but due to a technical
problem, I am not able to provide the Nasdaq numbers today.
As always, feel free to send me
your comments and questions.
P.S. I have a new trading module and a new audio service coming out.
Click here for information about the module. Information about the new
service will be available shortly.