Some News That May Go Unnoticed
While my brain and fingers are still a bit rusty in
terms of trading at such a fast pace, the decent price action late
last week and the news on Sunday had me adequately prepared to take advantage of
the trading we witnessed on Monday morning. Once again, knowing the levels for
the stocks you are trading, as well as the S&Ps offered you that additional
edge.
Despite being a very news-oriented trading session, it
was still a day where trading the mid-morning was off limits. If you tried to
take HVT
trades, you more than likely got chopped up. I suspect until we launch the
attack, the mid-morning trading will remain off limits.
This chart clearly demonstrates price action which is
not conducive to HVT.
I was speaking with a subscriber last night on the phone, and we were both
commenting on how the afternoon, while active, was not terribly conducive to HVT.
In all, I did seven trades yesterday, six in the opening hour and one in the
afternoon. Incidentally, the trade in the afternoon was a scratch (breakeven),
and I quickly realized that the choppy and erratic nature would yield little
results.
After last night’s speech, the market certainly has the
roadmap going forward that should cut down on the “random” price
spikes, but luckily will still keep price action fluid, great for HVT.
Nonetheless, after the “news euphoria” wears off, the market will once
again contend with technical levels in the market. Presently, the market has
achieved some great gains and taken out one key level thus far, 856. The second
level which I deem critical is a close above 875. What has probably gone
unnoticed this morning was some headlines from tech companies, mainly [AMAT|AMAT]
and [GTW|GTW].
Lack of demand and layoffs were the central theme, not a good sign for stocks
which are grossly overvalued. So, let the market breath for a few days and take
full advantage of this great trading environment. After that, I suspect there
will be some great longer-term trades. I will keep you posted as they unfold.
| Support/Resistance Numbers for S&P and Nasal Futures |
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* indicates a level that is more significant
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