Rewind Back To Tuesday’s Close
Well, after some favorable news from
(
IBM |
Quote |
Chart |
News |
PowerRating),
the S&P futures find themselves back where they closed just two days ago.
The upward shot witnessed since last Thursday continues. The momentum being seen
indicates that this is more than just a standard countertrend rally in a down
market. Not a bottom per se, but given the put/call ratio remains above 1, it
appears that the public has just started to learn to sell the rallies.
Unfortunately, the rules have changed yet again. If you were to really dig into
the daily and weekly charts of the S&P futures and S&P cash, it is
pretty clear that there are some solid reasons for this rally, and a re-test, or
pullback is not in the cards…for now.
So, as we head into today’s session, the S&P futures will be attempting a
run toward the next key technical level, or shall I say technical area, the
892-903 range. The key support at 870 will remain (38% retracement off of
Tuesday’s highs and the breakout level of 846).
In terms of strategies going into today’s session, I will be looking to fade
the early moves. Remember, do not fall in love with the trade. You are simply in
there for a trade, not to call the short-term top. Stocks like IBM
are well suited to this on the heels of its positive earnings.
| Intraday Setups |
|
|
|
|
| Stock | Action |
| ADP | Long |
| ADI | Long |
| VSEA | Long |
| SMTC | Long |
| ISIL | Long |
| LLL | Short |
| MERQ | Short |
*Be really careful with the long positions today. At the time these were
identified (last night), the futures were not up 22 points, so many if not all
of these stocks will gap higher, making a long at that point a bit less
desirable. Look for pullback to support and a market that is chugging higher
before establishing these trades.
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| 905 | *952* |
| 895 | 941.50 |
| 888 | *933.50* |
| 880 | 925.50 |
| *872* | 914.25 |
| 865-66 | 910.50 |
| 858 | 903 |
| 847 | 899 |
| 842 | 883 |
*indicates a level that I feel is more significant.
As mentioned yesterday, the column is a bit light as I am racing to meet the
deadline for my book. Again, I appreciate your understanding and patience. I
have been careful to not offer any fluff in the column and just give you the
essentials for the day ahead.
As always, feel free to send me your comments and
questions. See you in TradersWire.