Six Areas To Watch This Week
The action is exciting out there. Here is a summary of what
I’m seeing from a Fibonacci point of view:
1. Biotech hit a
Fibonacci Air Pocket today.
2. Semis are reversing out of daily Bearish Patterns
against Fibonacci resistance.
3. A confirmation of the semi reversal will be to
watch the 60-minute Semi HOLDRs chart (SMH). If that chart breaks symmetry, we
could be in for a longer corrective move.
4. The Nasdaq E-mini contract (NQ03M) is approaching
a critical daily support zone that includes four symmetry levels. This zone
could present a long opportunity. However, failure to hold that critical zone
from 1073-1100 would signal a deeper correction is in order.
5. The 30-Year Treasury has pushed the limits of the
Daily Bearish Gartley pattern. I draw the line in the sand at today’s high.
I’m interested in short trades off of this daily pattern with a stop above
today’s high. If the pattern fails…I’m going to be focusing on buying
pullbacks. For now…it’s a reversal pattern opportunity with defined risk
parameters.
6. I’ve been tracking the Weekly chart of
Caterpillar for some time now and have mentioned it in past columns.
Structurally, this stock is hitting weekly resistance at a symmetry level and
has double topped on this weekly chart. My initial target on this stock to the
downside is 44 to 46 if we can punch down through the 49.50 to 50 level where
two symmetry support levels are standing.
7. I still have the Lean/Chubby long trade on with
Weight Watchers (WTW) and Krispy Kreme (KKD). I’ll update you as they occur.
Good night!
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