Why You Should Attack Only When The Time Is Right
Well, I hate to say it, but there is just not a
great deal to talk about today. Yes, we did manage to close below 840
on the S&Ps, a support level that I have been mentioning for the last few
sessions. However, as has been the case recently, the market just shrugs its
shoulders and continues on. Traders across the board are growing tired of the
inaction, but there simply is not much that can be done until the “funk” is
lifted from the market, and regardless of the outcome, Iraq will be the catalyst
to produce some volatility.
Looking at the Nasdaq 100 futures, the 1019-1025Â in the
Naz futures continues to stuff any rally attempts, but so far there hasn’t been
any swift downside follow through. 975-977 and 962 will have to be broken to the
south before we may get some gas to the downside.
Yes there are trades intraday, maybe one or two as the market unfolds, but
given how jittery the price action is, it is difficult to identify them in
advance. In fact, I have found it necessary to update my subscribers in real
time for potential setups vs. the usual manner, which is the night before. A
good example was the short in United Healthcare
(
UNH |
Quote |
Chart |
News |
PowerRating) yesterday:
And that pretty much is the story of trading days recently, you wait
patiently for a good setup, if it comes, take it, if not, do not forget to turn
the lights off on the way out. Traders’ income can be lumpy, but that is OK, if
you attack when the time is right, it makes up for slow days. The trade in
UNH is proof.
Going back to Thursday’s column regarding the chip stocks ahead of their
mid-quarter updates, I have to say that they have held in really well over the
last couple of sessions despite the move down in the indices. You can look at
this either as a positive, or as I have decided, a good opportunity to leg into
some shorts at decent prices ahead of what I feel will be a move lower in the
coming sessions. The mid-quarter updates are just a week or so away. Look for
stocks like
(
AMAT |
Quote |
Chart |
News |
PowerRating),
(
KLAC |
Quote |
Chart |
News |
PowerRating),
(
CDWC |
Quote |
Chart |
News |
PowerRating),
(
IBM |
Quote |
Chart |
News |
PowerRating),
(
JNPR |
Quote |
Chart |
News |
PowerRating) and
(
INTC |
Quote |
Chart |
News |
PowerRating).
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| **875** | *1039-44* |
| 866 | *1019-25* |
| 856-58 | 987 |
| 851 | 975-77 |
| 844 | 971 |
| *840* | *962* |
| 836 | 952 |
| 827-29 | Â |
| 821-23 | Â |
| 813-15 | Â |
| **808** | Â |
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As always, feel free to send me your comments and
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