Earnings Season is officially in full swing. INTC and KO beat expectations and are trading up. Big Financials are putting some softness into the market as traders sell JPM and WFC after earnings. So once again, Financials are no help to the bulls.
The pre-market futures dropped sharply after the Retail Sales report came in worse than expected. The PPI report came out pretty much in line with expectations. There shouldn't be ANYTHING in the big economic reports that is surprising to ANYBODY on this planet AND most of the known universe (Retail Sales and PPI are two of the top seven reports). However, traders actually acted a little surprised this morning.....
I speculate that we will stay in consolidation this morning. Keep an eye on the 15m charts on the SPX. Until the consolidation channel (on that time frame) from yesterday and this morning resolves itself (either up or down) then don't expect much real movement. An intra-day swing trader can play around on the swings in the channel, but don't get too carried away as we head full bore into the heart of earnings season.
Support on the SPX (short term) is the 960 - 965 area. If the market drops through 940 then we could see a round trip back to 900, and possibly the mid 800's. I want to see an orderly consolidation (which we are getting so far) to raise the probability that the 960 area holds and we take another leg up in the current bounce.
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Hey everyone,
ReplyDeleteI'm waiting for a bounce off the upper part of the channel (13dma also), a break of the lower part of the channel, or a break of the upper part of the channel. Until then, I'm sitting on my hands..
Joe
I'm sitting on my hands next to you, Joe!
ReplyDeleteEntered spy puts off the channell break at 94.40. Long time waitning for something to happen. Its hard to just sit and wait, afraid to miss something.
ReplyDeleteWell, missed the initial move down because of class. Waiting for a small bounce then I'm getting in some puts.
ReplyDeleteJoe
Entered puts on MIR and CTSH today. Working out nicely so far. Going to risk holding over night. Today seems to be a nice bear flag entry day.
ReplyDeleteDon
1st set of puts on the spy made 26%( was up 35% ) and the 2nd set I bought into the close made 19% in 40 minutes.
ReplyDeleteAnyone see what happened to that 1000 point day from monday? I cant find it 2 days later.
One more time...CRAZY!!!
Thank you Dwight for your continued focus on interday trading I dont know what we would do without you.
Hope all is as well as it can be with you and your family.
Steve and Don,
ReplyDeleteI'm guessing your holding overnight? I'm in a spy put (currently up 39%) holding overnight. Let's see what happens..
Also, Dwight, what are the rest of the main 7 economic indicators?
Joe
Joe, Good for you on your trade - up 39%, Steve you probably did well too. Whirlbet did you stay in overnight? It was a great day for puts!!
ReplyDeleteI would have bought a put on the SPY but i traded 3x's in the past 7 days. (HIGHLY FRUSTRATING) So I spent all day studying and gearing up for the next 3 trades. Getting my thoughts in order for my next plan of attack.
I wonder what is going to happen tomorrow!! Denise
Denise and all of you with the day trade problem, can you guys open small accounts with different brokers this way avoiding the day trade issue. I dont know what the minimum deposits would be but maybe $1500 or so at 3 different brokers. Its alot less than $25k.
ReplyDeleteI made 2 trades just today on 1 equity. That daytrade thing must really suck. Hopefully this idea will work.
Good luck!
p.s. still to scared to hold overnight. Sold just b4 the bell.
I see that the high in the S&P was a perfect test of Dwight's lower long term channel indicating that the old support is now resistance. I bought puts yesterday and made 18% today and I am still holding on! WEEE
ReplyDeleteDwight's lower target now looks possible.
Ken B