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.
In this video, we talk about the rally we have seen off the lowest and what is driving it. Will we keep going and is this sustainable?
