The Bulls Triumphant Comeback, Or Just One More Head Fake?
While predicting the future of stocks prices can be
an act in futility, yesterday’s reversal, while
impressive if you simply looked at the closing net change, those who were
trading it probably noticed how labored the rally felt. Unlike traditional short-covering
rallies (if that’s what it was) the action yesterday was guarded, almost as if
everyone was waiting for someone else to buy before they did, and vice versa.
Continue to take the temperature of the market intraday to determine your
approach. For me, yesterday was a good trading day, but from an HVT
standpoint, I needed to work hard to make my money. Head fakes and lethargy in
the underlying stocks was all to common. This resulted in a very picky selection
process, no shooting from the hip. The number of trades I did and the share size
per trade was down significantly from my previous trading day. Today could be
totally different, I just do not know.
Potential Intraday Setups
(Longs are meant to be treated as slightly
longer hold time with protective trailing stop.)
IBM: IBM
decisively got over the 73.25 – 73.77 resistance zone that we outlined in
yesterday’s FN Service. This is hugely bullish not only for Beamer, but for the
broader market. Keep an eye out if there is a retest.
(
GILD |
Quote |
Chart |
News |
PowerRating)
(
MEDI |
Quote |
Chart |
News |
PowerRating)
(
ESRX |
Quote |
Chart |
News |
PowerRating)
(
SCIO |
Quote |
Chart |
News |
PowerRating)
AMGN: AMGN, trading
from a technical aspect, is the best I have seen a stock trade in a while using
our criteria. We need to continue to “bleed him dry” while he
continues to trade in this fashion. As with IDPH, look for AMGN to test Friday’s
highs at 48.60 with support below at 46.73.
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| 952 | 1015 (massive confluence) |
| 942 (key) | 1003 |
| 938 | 996 |
| 923 | 977.30 |
| 920 | 969 (confluence) |
| 912 | 947 (confluence) |
| 905 | 935 |
| 891-96 |
As always, feel free to send me your comments and
questions. See you in TradersWire.