My 2 My Favorite Daytrading Setups For Friday
Today was a day where
you could actually rely on some old HVT (High Velocity Trading) tricks
in order to pull-out some good gains from the market, however, if you also
allowed computing power to assist you, you simply made a good day even better.
Given the weakness in the dollar (Dollar Index) overnight, essentially breaking
through some key Fib support at 87.37, it was a pretty sure bet that gold stocks
would be bid. That being said, my only focus on the opening was Newmont
(
NEM |
Quote |
Chart |
News |
PowerRating).
Given the technical backdrop on NEM it was even more compelling, especially if
it broke through the 200-day EMA at 40.67. The chart below highlights some of
the entry and exit points of my trades today:
It did seem a bit odd that NEM follow-through was limited, however, unlike a few
years ago where momentum was usually pretty consistent on a stock “in play,â€
that is simply not the case anymore. We waited nearly another 60-minutes before
we traded NEM again, despite the break above 40.67 — the price action was simply
choppy and unpredictable. Until we saw a clear sign that the ‘big money’ was
back via our Velocity Indicator, we sat tight. It served us well.
The nice thing about
trading FX for the remainder of the day, as mentioned in
Tuesday’s article, is that knowing the levels and price action of the dollar
rather intimately allows me to pinpoint the days to trade NEM — which is not a
stock you can go to on any given day.
Keep an eye on the Dollar Index below 87 tomorrow. If that
happens NEM should get driven higher. And since NEM broke up its 200-day moving
average today that would accelerate further gains in NEM.
The drillers could make new highs tomorrow to…if oil
prices stay strong.
As always, feel free to send me your comments and questions.
Dave Floyd is President of Aspen Trading Group, which provides research/trade
ideas on the FX and equity markets as well as analytical software. Aspen Trading
Group is based in Bend, OR.