Thursday Morning Briefing

Welcome to our morning briefing. Here we are reviewing short term setups ahead of the NYSE opening bell. If you are a scalper or swing trader then these setups may be of interest to you. As usual keep in mind that these are short term setups although they could be used as early entries for more longer term positions.

As you know Scott is in town and I’m probably not going to do much on the trading front today as I’m playing tour guide. That shouldn’t keep you from having fun however as we’re heading into interesting territory:

The spoos are back at the 25-hour SMA which has provided support for the past three sessions. The only exception was a breach yesterday but if you look closely there was a Bollinger squeeze in the works and it’s not unusual for price to fake a breach to test a BB nearby (i.e. scare the children a little). This is a decent entry opportunity on the ST panel but I’m not loving it due to the weekly:

The daily is not giving us any context right now but the weekly has us right below a NLBL at 1694.5 where I expect resistance. And then there’s this:

Coincidentally (or perhaps not) this is exactly where we’ll be running out of volume on the profile chart. So if you’re still holding long this is where I would start to lighten up. We’re not there yet however and as of right now I don’t see any pressing reason to pull the cord.

The YM looks like a possible long once (and only when) it meets up with its 25-hour SMA. It’s been extremely well behaved in the past three sessions and thus it’s not unreasonable to expect the 25-hour to drive it higher. On a failure we would want to be long but I would probably wait for a last kiss goodbye (drop followed by a revisit and that’s where you want to be short).

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Public Service Announcement: As you can imagine Scott and I have much to catch up on, in particular as he’s leaving Valencia tomorrow early afternoon. So I don’t expect to put up a post tonight unless something extraordinary happens in the tape. We’re having a lot of fun together and seem to be getting along just famously. After lunch we’ll head out to the gym for some sparring – should I survive the experience then I expect to put up a post tomorrow morning. He’s a big guy – so wish me luck.

Cheers,