The Focus Is Now On Technicals: Look At These Charts
As I mentioned in yesterday’s column, patience is a virtue. Yesterday morning’s
action played out exactly as I had suspected, the gap was faded not only for HVT,
but also for some longer-term daytrades (30-60 minutes). Was yesterday the Fib
turn date that I had been discussing? Possibly. The closing action was pretty
lame. The big earnings reports (MSFT and INTC)
are behind us. So, unless there is some robust news, the market will need to
focus purely on technicals. At this point, the technical picture is a little
clearer, but no definitive conclusions can be drawn at this point.
As of last nights close, it does appear that the Fib time window I have been
talking about kicked in. The S&Ps closed very poorly. The chart below
shows that.
So overall, I am expecting some weakness in the coming sessions, although I
remain guarded on making a bold stand. This will be welcomed on two fronts:
- Better HVT as the current range may be broken. This would invite in
sellers and get the intraday volatility going. - Benefit position-oriented short positions. I mentioned MER,
SMH and EBAY
in Monday’s column in terms of scaling in. They took some heat in the last
couple of days, but with the benefit of adding into today’s move higher, the
positions are roughly square and are poised for good gains if there is
follow through to the downside.
| Support/Resistance Numbers for S&P and Nasdaq Futures |
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Today’s session will likely be especially quiet after the morning session on
the heels of Passover and Good Friday. I cannot remember a time when I have ever
traded after the morning session ahead of a holiday. It is simply not worth my
time. The action is choppy, volume is anemic etc., etc. Given the challenges of
the market currently, the last thing I need are more obstacles.Â
So, enjoy the weekend, rest up, do a little chart work, and come in on Monday
ready to take advantage of any opportunities that unfold. Forcing trades is
still not the way to play this market.
On a lighter note, for those of you who ducked out early from work yesterday
(me) to catch Man U/Arsenal, wow, what a good match!
Have a great weekend.
P.S. I have a new trading module and a new audio service coming out.
Click here for information about the module. Information about the new
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