Take Two
Let’s hope that the intraday volatility picks up a
bit today. While yesterday’s action was certainly not bad if you came
in positioned on the short side, HVT was
pretty lame as the markets did a “Gap and Crap” to the downside. I did
a grand total of 4 HVT trades yesterday. For the first time in many days, the
number of trades I did as a “position” outpaced my HVT trades.
Selectivity was the key yesterday. If you take a quick look at the S&P
futures on a one- and five-minute chart from yesterday, you will notice the
severe lack of quick intraday volatility spikes, the selloff and range trading
was extremely orderly.
So now what? Luckily, the markets are still in a vulnerable position, and I
expect that the volatility will pick up really soon, but until it does, trade
lightly. Based on the fact that “emotions” seem somewhat contained,
you will need to rely more heavily on technical levels to determine entry/exit
points. Â
S&Ps:Â Â Â 879 and 873
Naz:Â Â Â Â Â 904 and 897
If these levels are breached with any conviction, selling may accelerate, and
buyers may step up and continue to allocate money to the gold mining stocks, as
has been witnessed in the last few days. Newmont Mining
(
NEM |
Quote |
Chart |
News |
PowerRating) appears poised to push higher. A push above yesterday’s high would be
encouraging.
From an intraday position standpoint, keep an eye on:
RJR potential long
SMH potential long
For those of you familiar with Elliot Wave analysis, these two issues are
setting up nicely on the hourly chart. One caveat, though: a break below 58.80
on RJR would not only stop me out of a long position, but may bring me in on the
short side.
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| 909 | 948-51 |
| 902-03 | 933-35 |
| 893-95 | 925 |
| 887 | 917 |
| 872 | 900-03 (confluence) |
| 864-66 | 887 |
| 853 | 864 |
| 846 | 852 |
As always, feel free to send me your comments and
questions. See you in TradersWire.