As I worked through the charts last night, I was struck by how many oil related stocks were on the momentum moves that I scan for. Outside of a few odds and ends it was mostly oil, oil related and more oil related stocks.
We wake up to see that the bounce play looks to be alive and, as one would expect, it happens overnight and out of hours so most will not be allowed to take the low risk entry from yesterday's close. When I look at these charts and I look at the time frame, Thursday and Friday look particularly troubling from the market's perspective. That leaves today and tomorrow as good bounce day candidates. Today's bias is up but you likely cannot buy momentum but instead pullbacks intraday.
As we head higher, I will continue to look for and establish short positions in individual stocks and then the index vehicles. I'll key off the SPX as a measure of how high the bounce is taking us. There is reasonably good resistance now at the 1198-2000 area and then serious resistance at the 1210 area. The DJIA has been the weakest but was the most oversold as of yesterday and is why I worked it for long trades. Same will be true today. The real measure of any advance is participation by the BKX and the SOX/SMH so watch how they behave.
We wake up to see that the bounce play looks to be alive and, as one would expect, it happens overnight and out of hours so most will not be allowed to take the low risk entry from yesterday's close. When I look at these charts and I look at the time frame, Thursday and Friday look particularly troubling from the market's perspective. That leaves today and tomorrow as good bounce day candidates. Today's bias is up but you likely cannot buy momentum but instead pullbacks intraday.
As we head higher, I will continue to look for and establish short positions in individual stocks and then the index vehicles. I'll key off the SPX as a measure of how high the bounce is taking us. There is reasonably good resistance now at the 1198-2000 area and then serious resistance at the 1210 area. The DJIA has been the weakest but was the most oversold as of yesterday and is why I worked it for long trades. Same will be true today. The real measure of any advance is participation by the BKX and the SOX/SMH so watch how they behave.
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