Volatility Junkie

At
this point,
I have lost track as to the number of days the market has
remained in a trading range, but I do know it extends back into June.
Will today be the day where something decisive happens?
Early indication on the futures says maybe.
The futures are trading below — you know the answer — 1222.
The Nasdaq is well off resistance at 1757, and currently below 1700.
Listen, the summers are always slow, it is just a simple fact. This volatility
junkie is hoping the time is drawing near.

I won’t bore you with the
daily technical levels, since they have not changed over the last few sessions.
However, the intraday numbers change each day, so let me share them with
you. The S&P should see support on
the opening at 1211.80 and overhead resistance at 1221.6.
The Nasdaq has support on the opening at 1654 and 1674; resistance is
seen at 1689 and 1720.

Bear in mind that today is
options expiration (technically it is tomorrow) so expect some unusual price
action.
If in fact that scenario does pan out keep a few simple rules in mind to
optimize your trades:

  1. Don’t
    sell extended moves on the one-minute chart. The 20-period moving
    average is the resistance here.Don’t
    short stocks that are in an upward trend on a one-minute chart.
  2. Synchronize
    your entries with the price action in the S&P and Nasdaq futures. (See
    chart). The Nasdaq one-minute chart
    and Xilinx (XLNX) are identical.

Whatever scenario plays out
today, assuming it is not complete chaos, thus offering abundant trade setups, I
will be sharing my insights with you in TradersWire.

As always, send me your
comments and questions, davef@tradingmarkets.com.

Have a great weekend and a
profitable trading day.

Dave