Here’s my plan for today
Friday’s 12/30 session was another
micro-range event that ended with gyrational whipsaws to finish the day – month
– year. All stock index futures are poised for gap-up open moves that already
exceed many of the entire cash market session ranges from the past few weeks.
This one is capable of ramping much higher into the close OR reversal failure in
spectacular fashion.
Looks like an interesting start to 2006 as we
expected!
Hopefully index traders have seen the last of
no volatility, dead range sessions for awhile. We will be buyers of the ER
particularly and perhaps ES right off the opening bell in momentum fashion. From
there the long trades will be managed with trailed stops for locked-in profits
while we follow the chart signals for potential gap & fail move that could head
significantly lower if selling ensues.
Not much to glean from the short term charts
right now… recent action was nothing more than sideways churn for weeks.
Today’s play is all about today’s charts. With FOMC minutes and ISM data
released at different times this session, there are plenty of catalysts to make
this one eventful.
Summation
Today is more of a setup session than anything else. We’ll see if
ranges open up a bit, new highs or lows are established outside recent zones,
etc. For the intraday action I’m an early buyer and remain to the long side if
price action stair-steps upward. A surge higher and flat coil from there would
predict afternoon selloff potential. Other than that, playing the intraday
signals as they come and see what shapes up for tomorrow once this closing bell
rings.
Trade To Win
Austin P
(Weekend Outlook trend-view section…
open access)