I’m Pretty Sure This Will Be A Powerful Move
In honor of the upcoming Fourth of July holiday,
I figured I would offer everyone a little present (a.k.a. hot tip, in stock
land). I give this same gift to myself every summer, sometimes quite
frequently. However, this year I have something a little extra I want to throw
in. First, the traditional gift:
Trading Coupon
This coupon entitles the bearer to avoid all afternoon
trading sessions without any guilt whatsoever. Contrary to popular belief,
there is no need to remain in front of your screens all day during the
summer. In fact, East Coast residents in particular are encouraged to get out
and enjoy what little good weather you receive each year.
Secondly, the market promises not to run off in hyper -rading
mode unless provoked by a nasty debt default or major political
crisis. Luckily, provided you do not leave the country, you will be able to
get back to your trading station within a reasonable amount of time since it
will be all over the TV that evening.
Valid July-August 2003
Only
I encourage you to make copies of this coupon and distribute them to your
trading colleagues who may share “miss the cash cow trade-phobia.”
On a serious note however, there is one technical item that does need to be
observed for clues to potential market activity (2nd gift). The 240-minute chart
below encapsulates not only a potentially powerful patter, but also shows just
how critical the 971-72 level is. Just as a refresher, the 971-72 level is the
neckline of the head and shoulders formation on the monthly SPX, quite critical
in my opinion.
Based purely on extrapolating forward, today or tomorrow should provide some
clues as to which way this pattern plays out. Frankly, I do not care which way
it goes, but I am pretty certain that the move will be quire
powerful. Consequently, HVT as well as
intra-day position trading may get a bit more robust.
You will recall that earlier this month I mentioned that the close for this
month would be critical. Depending on you draw your neckline, the close was
either slightly above or right at it, essentially inconclusive. The next few
days, as seen in the 120 or 240-minute chart, should begin to offer near-term
guidance.
| Support/Resistance Numbers for S&P and Nasdaq Futures |
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As always, feel free to send me your comments and questions.
Dave