Wild And Wooly
Wild and wooly, that would be one way to
describe yesterday’s session. Right from the opening bell there were a two
choices, Tyco
(
TYC |
Quote |
Chart |
News |
PowerRating) and Dynegy
(
DYN |
Quote |
Chart |
News |
PowerRating). Both stocks had news-related stories swirling around them and plenty
of volume which allowed for quick entry and exits without wallet breaking
"air pockets." As anticipated, the markets did stage a nice comeback,
as the critical 1085 level held. It would appear the stage is set for the bulls
to share the limelight for a brief time, but I suspect "brief" is the
operative word. A CVR 1 was generated last
night, indicating some strength.
Naturally, the Durable Goods number due
out this morning will override any and all conclusions drawn from yesterday’s
price action. I am hoping that the number comes in far away from expectations,
whether it be above or below. Frankly, a repeat of today would make Dave a very
happy man going into the weekend.
From a longer-term perspective, I covered a few short positions yesterday as
it appeared that the market was reluctant to break through some critical support
levels. While several of these trades were based on a longer-term fundamental
view, I cannot ignore shorter-term price action. I can always reestablish the
position when the market is more conducive to selling pressure. In the meantime,
nothing will have changed fundamentally on the stocks I was short. On Monday I
will highlight a few stocks which are on my radar screen.
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| 1120 | 1364 |
| 1116 | 1350 (key resistance) |
| 1106 | 1339 |
| 1090 | 1299-1302 |
| 1084-85 (key support) | 1289 (contract low) |
| 1074 (contract low, key support) | 1264 |
| 1051 | 1238 |
Today, the last piece of the four-part series on Single
Stock Futures (SSFs) will appear. This week I will be discussing some
of the strategies I plan to employ. These products have suddenly opened up
several more approaches that will not only complement my existing style, but
also offer a few stand-alone strategies. Click
here to see the first 3 installments.
As always, feel free to send me your comments and
questions. See you in TradersWire.