The volatility to the upside continues to point in the direction of lower lows. Here’s how dollar, crude, and European markets are continuing to deliver setups. Also, I touch on the importance of market trend differences in the ES and YM versus the RTY and NQ.
My radar screen has clued me into a sector I rarely trade — the materials sector. Why? XLB as well as many of the top ten names all have daily squeezes, many of which are banging up against overhead resistance. Let’s look at short parameters for these trades.
After a strong up day yesterday that rallied directly into resistance, sellers came out in force today. As of now, the indexes are at key psychological areas of support, and the $PCALL and $TRIN are telling us we could get a bounce. However, to me, that’s a rally I can short. Let’s look at trade ideas in FB, NFLX, AAPL, WFC, and XLF.
Whether it’s short Dow or long US dollar, starting with the market trend revealed the play.
We saw a lot of selling today, but the longs didn’t need to be crushed … here’s how to avoid that.
