Waiting To Strike

The
infamous G&C
(Gap and Crap) took place on Friday as the indices
shot higher after a better-than-expected unemployment number. For me, these are
by far the worst markets to trade intraday from an HVT
standpoint. Needless to say, my day was done after the first hour of trading. It
was a good week so I figured why bother fighting it out when there will likely
be better opportunities come next week? Remember, you do not need to trade every
hour of the day.

Going into today, I am expecting some
sort of a pullback in the overall market. Not only would it be healthy, but it
would also shake things up a bit, from an HVT
standpoint. The last two days have been pretty slow. The price action has been
muted and labored. We need some fresh money to come in and that may not happen
at these levels. We will just have to wait and see. In the meantime, extend your
time frame until some of the quick volatility spikes come back into the market.
Adapt.

Key Technical
Numbers (futures):


S&Ps

Nasdaq
1201  1635
1192.5   1611 (confluence)
1183 (confluence)     1587-83
1179 (key resistance)  1575
1171-74     1569 (confluence)
1158-60 (confluence)    1551
1150-52 1527 (confluence)
1142-44   1497-1501
1136 (key support)   1480
1126
1120 (confluence)

Sometimes it is better to say less
than to try to fill the column with “fluff.” Quite frankly, there just
is not a lot to say about the current market. It feels “tired” right
now and good setups are fewer than they were in the early part of last week. Sit
tight, it will not be long before we see some great setups. There is just far
too much going on in the world for this price action to continue. This
“Thought For The Week” is quite appropriate.

Thought For
The W
eek:

“It
was never my thinking that made big money for me.
It was always my sitting. Got
that? My sitting tight waiting for the
exact moment to strike!”

Edwin
Lefevre, Reminiscences of a Stock Operator

As always, feel free to send me your
comments and questions. See you in TradersWire.


Dave