Trade ‘Em As You See ‘Em
Yesterday
afternoon’s action was a welcome departure from the usual
afternoon inaction. Not only was there
excellent volume and range, but the S&Ps and Nasdaq managed to close above
some key technical levels. Will the
indices be able to hold those gains? Anyone’s
guess, but the daily charts have still not changed from a slight downward trend,
so I feel the jury is still out. Trade
them as you see them, and I suspect that today’s action will be excellent.
I know that a lot of
the media attention had died with regards to emerging market debt, in
particular, Argentina. However, yesterday
Standard & Poor’s (the rating agency) downgraded the debt of
Taiwan. To quote Bill
Fleckenstein: “If Taiwan’s credit is no good, what does that say about all
this emerging-market debt and the other problems? (Memo to
Paul O’Neill: Contagion is spelled c-o-n-t-a-g-i-o-n.)â€
As a result, this is one of those “stealth†stories that can play out
real quick and offer tremendous intraday trading opportunities.Today’s key
technical numbers for the S&P and Nasdaq futures:
| S&P: |
Nasdaq: |
| 1217.40 |
1715 |
| 1210.91 |
1704 |
| 1207.8 |
1695.67 |
| 1189 | 1667 |
As usual I will be
in TradersWire Interactive during the day to share my observations.
Keep in mind that additional technical numbers appear throughout the day
and I will do my best to keep you up on what they are via TW.
Additionally, my first Trading Lesson will be appearing later today, I
trust you will find it helpful. Feel
free to send me your comments and questions.
Have a great
weekend.