Stocks held on well during Friday’s session, and I’m entertaining the idea that the indexes are getting ready for another leg higher. We’ll have to stay inside some particular patterns, but if we do, these are the setups I’ll be trading.
This is one of my favorite setups. On days like today (end of week and mixed market signals it’s tricky) but none-the-less an important one to keep an eye on!
This is a mini bootcamp on the daytrading we will once again be doing this week. The daily charts of the indices are in chop and reaching towards the upper ends of their respective ranges; it makes sense to be nimble. This is how we do it.
We head into tomorrow with everything tee’d up and ready to go…
Even though earnings are decent, this is what will break the backs of buyers.
Having a process for directional bias and identifying exhaustion levels is the key to my morning entries, in this case, on yet another big Initial Claims number. It’s tough to fade the strength on Thursdays lately, but that is exactly what we did.
Today’s early trading sentiment was slightly bullish to neutral, so we were open to shorts but would have preferred longs. The shorts had proximity and were the only setups I had… and then GILD came along and shifted sentiment on a dime. Here’s how the daytrading bias helped us as well as remembering that we short from the top of the range and buy at the bottom… also I am watching SMH and EWY for shorts positions.
