The Real Opportunity Today
Short and sweet
today folks. First, it is Friday during the
summer; after the morning session, hard to imagine much happening as most make a
bee-line for the Hamptons. Secondly, we are approaching quarter-end; many times
this results in some “window dressing” of large portfolios so that the reports
to shareholders make it appear as though they were diligent in investing their
capital. God forbid they do not own the big momentum stocks, that would make
their underperformance that much more appalling. My point is that there may be a
positive tone going into the close for the next few days.
The real opportunities for us
HVTers should come on the heels of the
University of Michigan Sentiment number due out at 10 AM EST. Look for a big
deviation from the consensus estimate (87.7) for a quick volatility spike. These
trades offer a great risk/reward ratio. Also, make sure you are on the lookout
for Fade The Gap trades; these continue to
be my most productive trades. Yesterday, Elan
(ELN) provided some great action and accounted for just about all my profits.
To repeat key levels: 354-356 in the SOX, 1190 in
the Naz futures, and 971 in the S&P futures. S&P 120-minute chart may–may–be
working on the right shoulder of a head and shoulders pattern, if we move
higher, fail to take out the 1014 highs, then turn down. The neckline lies at
971.
| Support/Resistance Numbers for S&P and Nasdaq Futures |
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As always, feel free to send me
your comments and questions.
Dave