Trade What You See
I wish there
were some items of interest to report, unfortunately, until this
range on the S&Ps is broken, I do not expect a whole lot of activity. The good
news is that since these levels appear to be critical, the forthcoming move
should offer some tremendous setups.
Retail sales have begun to come in
this morning, and it appears as though the consumer is showing no signs of
reigning in spending despite the sluggish economy. While on the surface this is
encouraging, it does make one wonder just how much longer the consumer can
continue at this pace. We will just have to see. In the meantime the
Retailing Index
(
$RLX.X |
Quote |
Chart |
News |
PowerRating) is within a
few points of 52-week highs. I suspect that going forward there will plenty of
action in the underlying stocks in this sector as the market gets more
information on the true strength of the economy. The retailing stocks are quite
vulnerable to any negative news given their run-up, but as we all know, trade
what you see, and all I see right now is a sector that is very in favor.
I trust that all of you took advantage
of the setups off the 1084 and 1081 levels yet again yesterday. The afternoon
session however, was uneventful. I made sure to not take any trades unless there
were glaring setups. I saw only one. No big deal. I suspect there will plenty
of trades this morning to compensate for yesterday afternoon’s sleeper.
Key Technical
Numbers:
S&P’s |
Nasdaq |
| 1130-31 | 1509 |
| 1123 | 1504 |
| 1114 | 1484-86 |
| 1101-02 | 1457 |
| 1090 | 1452 |
| 1084-85 (critical support) |
1431-33 |
| 1081 | 1425 (critical support) |
| 1075 | 1407 |
| 1061 (critical support) |
1384 |
| 1055 | 1364 |
| 1037 |
As always, feel free to send me your
comments and questions. See you in TradersWire.