The market’s professional gap today was lead by the Semi and Bank Index’s. The NASDAQ posted one of the highest volume days so far this year, likely due to Intel’s earnings. We touched our 1205 target on the /ES and the next long setup would be 1196.75. Today we had a Put/Call ratio close of 0.56, a sign to get short, however we will still look to buy the 1196.75 level given the risk/reward of 4:1. Watch for a failure point of…
The market cannot be stopped, or so it seems. Breadth was bearish all day today (while only slightly at -1.5:1 most of the day), but we continue the trend higher. Today’s price action was very similar to last Thursday only today we had a few pullbacks intraday. The morning allowed for a nice entry into the /ES daily swing long at 1185.25 and it touched to the tick. Our target is 1204.50 (once again new highs).
The total Put/Call ratio is inching lower closing the day at 0.68. Oil has been at a standstill at the $85 level while gold continues to rise, up $50 an ounce in 2 weeks. Copper futures (/HG) are coming off their highs, but not yet in a bearish pattern. Copper has been a market leader in the past few months. The VIX cracked 16, and oh yeah, volume continues to drop. All bearish signs, HOWEVER we must always remember that…
We saw similar price action in the markets this week as compared to last week, only instead of doji bars, we had large body candles. The lower volume is a concern, but we will continue to trade the setups in the market until they fail and the trend reverses.
In the week ahead look for these news announcements to act as potential market movers… Options Expiry and moderately packed news week! The market is on a tear higher and continues (ES +5 PTS) as I post this Sunday evening around 8:00 PM CST. One thing we must always remember is that no matter what our opinion is on the market and its future direction, we must not fight it. Trade the market, not your opinions. Our S&P target remains…
Closing just shy of our 1195 target (Long from 1172.25) on the S&P, indications are pointing to a lower Monday. Note: next week is Options Expiry and this tends to induce a bullish trend. Some of the things we look at to indicate daily swings in the market are the $TRIN and Put/Call Ratio (which we talked about this week). We had a close of .71 today on the Put/Call Ratio. This essentially means consumers are getting overly bullish and…