Tomorrow morning we will see what I believe to be the most important CPI report of recent record. In tonight’s video I want to lay out a plan for the market’s response to that report and precisely how I would like to trade it.
Corn and Soybeans will be in play this week and both have strong uptrend we can buy into. Crude oil pulled back and this put it, gasoline, and oil stock in play for a buy the dip. NASDAQ and Russell are two great “double red” downtrends on our TOPS layout and the rips are nearly ready to be shorted. Euro has triggered and followed through I explain the simple pattern that confirmed. Lots to talk about in this update.
Bulls had a strong showing on Tuesday and it’s a move that has at least one more leg higher. We’ll measure that move in tonight’s review, look at the plan against it for tomorrow, and update the latest on a few of my favorite stocks.
On up days like today we can look at downtrends that are correcting/bouncing, aka “the rip” that we want to short. However this is not valid in all indices, sectors, and stocks… we need to start with STRUCTURE. In this update I show you what (free) tools I use as well as how to know where and when to short the rip in the downtrends of this current environment.
Of the charts I’ve reviewed this week, there’s 3 that stood out for some of their technical qualities and I want to keep a close eye on them for 3 different kinds of trade opportunities.
When trying to identify the next move we can look to clues from the Voodoo Lines and the Micro Voodoo Lines which help spot support and resistance for smaller-timeframe swings.
Surprisingly weak close for the Monday session. I thought the SPY could bounce again into overhead resistance, but so far, couldn’t do it. I then look at leading stocks like AAPL, AMD, and GOOGL to see what stories they tell me. They could clue us in for timing as well.
Today was choppy top to bottom with no resolution, but tomorrow holds promise for the reasons discussed in this update.