Iraq, The Savior to Our Directionless Markets?
Frankly, I do not care what the catalyst is,
but getting out of bed each day to come in and watch paint dry is getting really
old. HVT, as I have been saying for the last
couple of weeks, is just horrible. The only way I am getting through is by
pushing out the time frame on my trades, taking cues from five-, 15- and
60-minute charts.
So, with the S&Ps up some 15 odd points, has the market finally gotten
one of the big impediments out of the way? Only time will tell. Frankly, Iraq
allowing UN inspectors back in the country is hardly a development which
alleviates the problem, to me it appears more like buying time. Regardless, the
market will be the final judge, and we should get an idea of what it thinks on
the opening.
In the meantime, I will pursue HVT in the opening hour only. After
that, I will rely on the longer-term setups mentioned above or pursue other
interests or tasks all together. I have been through cycles like this before.
You cannot fight your way out of them. The successful trader will simply do like
Iraq, buy time.
With the S&Ps up at the 909 level, they are poised to make a run at what
I consider to be a critical technical level, 914. See chart below.
I would be really careful getting long on the opening. The better plan of
attack would be to fade the opening, whether that is from an HVT
perspective or based on a five-minute chart.
Nonetheless, while scanning for some setups last night, I came across these:
Longs:
(
ALL |
Quote |
Chart |
News |
PowerRating),
(
MDT |
Quote |
Chart |
News |
PowerRating)
Shorts:
(
FITB |
Quote |
Chart |
News |
PowerRating)
**These setups were based on looking at daily and
weekly charts, so they do not constitute an intraday play. I am viewing these
trades with a time frame of several days to weeks.**
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| 909 | 955 |
| 903 | 938 |
| *898* | 929 |
| 893 | 915 |
| 885 | 908 |
| 882 | *900-05* |
| *870-75* | 887-92 |
* indicates a level which we feel is more significant
As always, feel free to send me your comments and
questions. Be selective. See you in TradersWire.