early morning charts…DAX, Eurostoxx 50
while the S&P 500 rallied beyond its 61.8% Fibonacci retracement move, the European indices…at least the DAX and the Eurostoxx 50 are still well within those resistance zones. See the charts below. Given that this rally was all on the back of news out of Europe it might be wise to take resistance clues from […]
banks!
ok…could have saved the exclamation point, but they are breaking out. the trick to this trade will be wait whether they can actually close above the breakout levels. so i's wait and see until at least 3:30 pm today.. should they be able to close well above there…in case of MS around $18.50 or better…one […]
breakouts in these stocks we follow:
here is a list of stocks we mentioned recently that are breaking out today: XLE, AKAM, BLK, MS, BKX, ZUMZ, CHKP, MON we don't want to go long any of them right here right now, but should they close at their highs we may add something in small size…will keep you posted.
spx right at the 200 day simple moving average…
so the question begs…can it pop above here? of course it can, but a decent risk/reward short side opportunity has arisen here. one can just short the spy, or sell far otm calls… although with vol having come in puts are again getting cheap… there aren't any great short ideas here right now…but they can […]
Morning Thoughts Thursday October 27
Don't get emotional in this tape, it's the most headline-driven tape we've ever witnessed. Patience is key here…observing in the dugout is important…let the market and hence the trades come to you, do not chase. Live to trade another day. The daily chart of the S&P 500 emini futures show that we are coming into […]
CRM…potential short side idea…
another high-flyer that hasn't yet fallen apart too badly is salesforce.com (CRM). the $110 area on the weekly chart below shows good support. however if that support area gets tested another time it may not hold. the daily chart below here shows that a daily close below around $114.50 may offer a decent short entry […]
potential trade: long dollar index etf
we've posted this chart a thousand times, but it is now getting to the point where we may want to add a bucket 3 long position in the dollar index again…via the UUP etf. note the confluence of support points on the daily chart below.
FFIV potential trade setup
after a huge run in 2010 FFIV this year has been trading in a wide downward trendm which the stock is again trading at the top-end of today. see the weekly chart below. so from this point of view the simplistic approach would be to short some FFIV for a mean-reversion trade. on the daily […]
stuck in a trading range?
as mentioned yesterday, given how sharply stocks have risen off the october lows we see it as unlikely that we will revisit those lows again over the next few months….but we do think that sometime around Q1 of next year stocks will break the October lows. in the meantime however the trading range we currently […]
european summit schedule:
European Council leaders of all 27 EU states meet at 12 PM EST in Brussels. That will be followed by a meeting of eurozone leaders at 1:15 PM…over dinner. so let's do some math here. 12pm et is 6pm est…if they meet at 7:15pm est over dinner and say have a three hour dinner meeting […]