Still Playing It Cool
Despite my prediction that a couple of down days
would add some volatility to the intraday trading (HVT),
it appears (pure speculation) that Triple Witching action is containing
much of the follow through on moves. The same could not be said for the
“mighty”
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), which experienced a sharp decline yet again.
You will notice that the low put in yesterday was exactly a 50% retracement off
the recent run from March 1. Now the index has only had a 12.5% run in less than
two weeks, not bad when you consider just how lousy the outlook is for the
sector. Rampant speculation with others’ money continues.
The SOX will continue to lead this market around intraday, and as I mentioned
the other day, if you are not watching the SOX intraday, you are at a
disadvantage. I have provided a few KTNs for today’s session on the SOX below.
From a trading standpoint, I am still playing it cautiously. I am just not
seeing the quick decisive intraday moves of 3 points or better in the spooz.
Most of my day’s gains are being made within the first 45 minutes. The remainder
of the session I patiently wait, or maybe play off a few news items that come
across the tape.
News that there may be a case of foot-and-mouth disease in
Kansas provided a decent longside trade in Surebeam
(
SURE |
Quote |
Chart |
News |
PowerRating), which provides food irradiation systems, and then when the rumor
was deemed false, the stock fell away rather nicely. I would not dismiss this
stock too soon, though. Given the potential ramifications of foot-and-mouth
disease, keep this on your radar screen. According to the newswire, the lesions
on the cattle are currently being tested. Hopefully it is nothing, but be
prepared. Other than those two trades, there was nothing that caught my eye from
an HVT perspective in the afternoon.
So what now? Frankly, with the exception of some unexpected news
event, the price action will remain tame until options expiration passes us by.
I just do not see it any other way right now. Be assertive on the opening since
that is where the best price action is currently, and for the remainder of the
day either observe, extend your time frame, or hit the golf course.
SOX KTNs
| 609 |
| 589 (key resistance) |
| 576 (support) |
| 570 |
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| 1182-83 | 1543 |
| 1178 (key resistance) | 1527-28 |
| 1169-71 | 1518 |
| 1158-60 | 1505-08 (confluence) |
| 1147-49 | 1493 |
| 1141 | 1485 (key support) |
| 1135 (key support) | 1478-80 |
| 1125.19 | 1471Â |
| 1115 | 1460 (key support) |
| 1105Â | 1435 |
| 1428Â |
With just over a month to go before the launch of Single
Stock Futures (SSFs), I will be starting a four-part series beginning
on March 22, the first part of which will address the following:
Section 1:Â Why I will be trading SSFs.
The introduction of SSFs will be a very exciting time for traders. They will
not only offer a new avenue for traders, but more importantly, offer a nice
complement to what many traders, including myself, already do.
As always, feel free to send me your comments and
questions. See you in TradersWire.