Quick Look at SPX | Bulls on Wall Street

Quick Look at SPX

Quick note on what I see tomorrow in the equities market:

 

I should restrain from trying to predict the market direction tomorrow considering we’re seeing a few significant reports in the morning including the Consumer Price Index and Jobless Claims. EIA Natural gas report comes a few hours later. 

 

Make sure you’re aware of what’s scheduled on the economic calendar. Today would have been a good day NOT to hold too many stocks into the close. The market data could put you in a world of hurt on a gap down. Now you’re stuck hoping all will be well.. something to think about.

 

I’m also interested in seeing how the financial sector plays out tomorrow of the bonus tax was levied on American banks from Europe. It’s a one time thing, but might push down the banks in the morning.

 

We finally did it Tuesday – the SPX shot through SMA200 and offered a lot of strong scalp opportunities. Money also moved back into speculative stocks and out of ‘safety’ plays. This is good news for me since I love playing highly volatile stocks intraday. 

 

The only thing that concerns me was the lack of follow through today. Yes, we held SMA200, so that’s good, but we didn’t go ballistic today. By definition, consolidation is good after a bid up day. I tend to agree. The issue is that SMA200 has become a mental magnet and I worry that a slip below it tomorrow could cause overly aggressive profit taking. Let’s watch carefully. I would like to see some consolidation after the recent moves and some sign that SMA200 will hold. 

 

The swing opportunities are really starting to show themselves more and more – we haven’t see quality swings setups in a while and hopefully tomorrow they will prove profitable (note – gut says we’re down tomorrow).


See you in the boom factory tomorrow. I’ll post a blog tomorrow with swing setups. Send me any questions that you may have.

Leave a Comment