Keep The Wind At Your Back
Despite
Friday’s rally, the major indices simply could
not hold on to their gains. It appeared as though the cloud of uncertainty won
out again. Rather than trying to determine when we may get a rally from these
oversold conditions, I will just need to refrain and trade them as they unfold,
which is always the best strategy anyway. As of 8 AM EST, the futures are
again under a bit of pressure.
Yesterday, from an
HVT perspective, was truly a situation where
the opening hour and a half was the only time where you could navigate with any
degree of accuracy. After that the market was extremely narrow, and actually
dripped lower. These are the times when you need to extend your time frame a
bit, say a 5- or 15-minute chart in order to have a shot at good trades. The
simple fact is that trades take longer to develop. Reduce your share size and
bite your lip, the immediate gratification that HVT
can offer is simply not there with these type of trades.
Below are some stocks that appear to
be setting up on either the 15-minute or hourly charts:
Northrop Grumman ( NOC | Quote | Chart | News | PowerRating) 60 minute |
Break below $119.70 may offer nice short setup |
Noble Corporation ( NE | Quote | Chart | News | PowerRating) 15 minute |
Break below $37 may offer short setup |
Symantec ( SYMC | Quote | Chart | News | PowerRating) 60 minute |
A nice upward trend is developing here, a break above 36 may offer nice long setup |
Naturally, like all trades, they
require the wind at your back, i.e., the market. Nonetheless, keep an eye out
for these setups as a way to complement your HVT approach when things get a bit
slow.
Key
Technical Numbers: (futures)
| S&Ps | Nasdaq |
| 990.53 | 1061.5 |
| 981.76 | 1049.25 |
| 975.65 | 1049.25 |
| 969.53 | 1037 |
963.00 |
1027.83 |
| 959.03 | 1018.75 |
| 1008.5 | |
| 989 |
As always, feel free to send me your
comments and questions. See you in TradersWire.