This Is The Best Way To Play The Market Intraday
Despite the massive storm back East,
trading, while quiet, certainly accomplished one thing:Â The 840 level held, and
now we are within a couple of points of breaching 856. A close above there would
be short-term bullish.
I trust that you took advantage of the trade in the
SMHs. While it would have been nice for a pullback, once the S&Ps did
not give up 840 after the first hour, I figured I better get on board and place
a stop loss.
As of 5:30 AM PST, it looks as though the futures are going to hold on to
most of yesterday’s gains. Naturally with Iraq still hanging over the market’s
head, price action will remain subdued, but at least directional. As mentioned
above, techs, and semis in particular, will remain the best way to play the
market intraday.
Nasdaq futures are facing critical resistance at two
levels: 1019-1025 and 1039-1044. These are two zones that need to be overcome
for the market to display strength, otherwise I am looking for a pullback of
some sort at these levels.
As has been the case recently, be patient, look for
opening reversal trades as the best bet, and lay low after the first hour, the
opportunities are non-existent at that time.
JNJ:Â This one may
come back and fill the gap left yesterday at 52.50. If so, that appears to be
good support and may offer a good long entry.
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| **875-78** | **1039-44** |
| 866 | 1027 |
| **856** | *1019-25* |
| 851 | 1014 |
| **839-40** | 1004 |
| 828-31 | 987 |
| 821 | 970-74 |
| 814-15 | Â |
And lastly, my book is ready.
TradersGalleria is where you can purchase it. I have put together a very
concise and useful guide to my trading style. I trust you will find it helpful. The
accompanying video for the book has been shot and should be available in the
next month or so.
As always, feel free to send me your comments and
questions.