The theme remained the same today, plenty of choppy back and forth action. SPY tested the 20 day EMA on the 60 minute chart couldn’t breakdown and then rallied to marginal new high on light volume.
The action for the most part continues to be bullish but breakout trading is not working well right now. Buying pull backs on important MA’s and previous break out levels is working better. This will likely remain the case until we have a catalyst to really breakout of the range on some volume. We may have to wait for next week’s Fed announcement or some of the inflation data to get us really moving.
I continue to watch the dollar index closely and it managed to close below the 20 day MA again. This could be a tell that we are headed for a move higher. The range has been pretty tight 81/80 and a close below 80 could give the market the shot in the arm it needs.
Even with all this chop I still have break out alerts tonight and again I am being very selective with them. I really want to see good volume and a nice smooth base before I enter trades. Failed breakouts on light volume and no news could be used as a place to flip and fade the move but short selling has been a tough game in this tape. As always use reasonable stops.
cern 85
genz 58
infy 60
wfsl 20
apa 107.5
nue 45.5
agu 69/66
wfsl 20
cog 42
agu 69/66
ctsh 51.31
pot 120
isrg 360
nfx 55
teva 61.8
trw 28
Best Practices In Trading: Getting To The Next Level
23 hours ago
You must really like AGU, its listed twice. Hopefully it sets up like CLNE last week which you also listed twice.
ReplyDeleteAlso what do you use to monitor the dollar? ETF or actual futures?
Thanks
I did it again? I really must be losing it. Yeah let hope AGU sets up well. Good news out of POT tonight should help this along. I use the dollar index, on Trade Station it's $DXY, you can also use the ETF UUP but that is not really a good trader, I use it as a tell.
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