Will Decision Break The Cycle?
Despite the predictably quiet nature of yesterday’s
session, there were some decent setups, mainly in and around the 908
level. However, like most trades recently it was certainly a quick love
affair. At the first sign of slowing in price action you head for the exit.
For this particular S&P setup, stocks like
(
AIG |
Quote |
Chart |
News |
PowerRating)
and
(
C |
Quote |
Chart |
News |
PowerRating) played out pretty well. Naturally,
there were other stocks that participated in this move, but these were the two I
was trading at the time.
So today will be the day that Easy Al, Sir Prints Alot, or whatever you want
to call him will make a decision on the future direction of interest rates. Will
the decision, regardless of what it is, break the current cycle of directionless
intraday trading? Who knows? One thing is sure, though, the trading immediately
following the announcement should be active. Absent a decision out of left
field, i.e., a rate hike or some strong language in the qualifying statements, I
will sit back and let the first few knee-jerk reactions go.
Looking at some stocks that have pulled back in their recent up-trend and
appear to have re-established that up-trend, keep an eye on
NVLS
XLNX
If you recall from my
column yesterday, I (as well as many other who are far more familiar with
Fib time cycles) saw the possibility of some meaningful price action between
Nov. 6 and 8. Oddly enough, it coincided with an FOMC meeting, post
mid-term elections and around some key technical levels. It does appear as
though a break of the range is possible today on the heels of election
results. Would I be getting long aggressively? Maybe, but I believe the more
important aspect may simply be a market that trades with more conviction. The
FOMC announcement at 2:15 PM EST will provide the last piece of the puzzle.
As has been the case recently, be selective and consider letting the trade
take a few more moments to develop, this will provide you with a better chance
of navigation until things pick up…which just may be starting, we hope.
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| 934 | **1070-71** |
| *925* | 1065.50 |
| 916 | 1053.25 |
| 911 | 1045.50 |
| 908 | 1041 |
| 906 | 1036.50 |
| 903 | 1024.25 |
| 897 | 1012 |
| 894 | Â |
* indicates a level that is more significant.
As always, feel free to send me your comments and
questions. See you in TradersWire.