Morning folks. due to our big friends at $csco futures are dipping in reaction along with stronger dollar. As we have talked about before keep $uup on your watchlist. The market right now is strongly inversly correlated to the dollar. How long that last nobodies knows it will probably be till we find a different catalyst. We still have good strength in oil and gold today. Those mgiht be the plays if they can hold up. OIl is at 88 dollars. Gold holding stead above 1400 at 1408.
we will see the next couple days how strong this market truly is. It will give us an idea if the structure is changing. If we can shake off a stronger dollar some not so good CSCO earnings report along with some overseas nonsense that will give us the green light to take on slightly more risk. With this gap lower we should test SPX 1200 which in the blog last ngiht we labeled as the first line of defense. If that breaks the 20dma is in sights. SPX 1192. As in many strong stocks or markets the 20dma often will serve as a bounce point for swingtraders that will be a good low risk load zone for us. In the mean time we have not traded too much last couple days and we will continue to be selective. the type of stocks i trade are not conducive to market weakness. @urbanryno has been killing it the last two days though. He has hit almost 10 trades in a row so keep an eye on him. he has the hot hand.
We havent seen a break of the 20dma since september so its important to see if the bears can test and break it today. In the meantime any trades we take we will keep a tighter leash on them till we start bouncing so take your profits a bit quicker.