Watching for Canaries
The market has been extended, but today it showed the first signs of pulling back. Let’s talk about the signals, and what to do when they become more clear.
The market has been extended, but today it showed the first signs of pulling back. Let’s talk about the signals, and what to do when they become more clear.
The NASDAQ futures formed an excellent pattern that we look for each morning. In this case the volume, direction, and Propulsion lined up for a buy. Learn this pattern. It repeats and is a bread and butter setup for daytrading futures indices.
The morning daytrades are an excellent way to stay nimble as the economy and “stockonomy” are telling two very different stories. Hit the reset button and start again fresh the next day. However, there are many setups that we are still in on daily time frames in bonds, gold, crude, Russell, XLP, XLY, and more.
Welcome to monthly expiration, where the name of the game is the grind.
Think of this week as the week of potential huge reversals in this asset class.
For now, I am trading a near-term move to the downside in crude, but what happens when we get there? Lower lows? I’m not betting on that…
As the markets remain open for Veteran’s Day, we are reminded that 1) The markets really should be closed! and 2) The volume is light and the week starts tomorrow. Scanning in preparation for tomorrow’s session starts here…