morning folks. futures indicating slight gap down. the market is sorting through some data on jobs, oil, overseas stuff. right now we are trading inversely to oil. so when oil top ticks the market dips and vice versa. when i woke up and oil was flat the futures were looking good. The velocity and volatility of the moves in oil are very fast right now. it can move 1% in minutes. this market is not for new traders or people taht can not afford to risk capital as now this goes beyond technical analysis and fundies of the u.s. economy. when u have unrest overseas the market volaitily can shake you out of every positin cascading your losses.
yesterday we blew threw the 10day and 20day moving averages. keep mind of last weeks lows as ur support. also the 50dma for the spx, nasdaq, and russell are right under neath. keep an eye on transports..if we get a bounce they need to lead us as they were the “tell” taht the market was gonna dip.
right now metails/oil plays are the ones taht are working. they are very very extended so its not an easy trade but they are going parabolic. if you think stocks like pdo and royl are overvalued thats not true. Pdo was 35 bucks when oil went on its last romp in 2008 and royl was 14. but in my opinion they are daytrading vehicles onlyright now as oil prices can tank 10 dollars in a hot second if we get some resolution overseas.
i highly doubt the bulls are just gonna roll over here,. there will be a fight at that 50dma. if we get a bounce the nature of it will have to be examined as it might just be an opportunity to sell stuff and go to cash or short swings. ITS a good time though to make ur wishlist of stocks that u missed the big run on that are getting faded. when market is ready to bounce they will be dirt cheap and be ready to load them.
no watchlist today.. ill daytrade oil/metals and scan for bounce plays. remember if u cant afford to lose better stay on sidelines or trade very smart and quick.