I just got home from some plans that ran late, so I am going to be quick. Fortunately, there is not much new to talk about. Our two primary scenarios remain on the table. That is, the markets are tracing out a triangle ($INDU, $NDX), which is the more bullish of two scenarios. Or, the markets are tracing out a series of 1-2s in a 5th wave (whether it be V or 5 remains to be seen, IMO). The final option is that we are putting in an ending diagonal, but we appear to be falling in 5s and rallying in 3s, which would lend the most support to the 1-2s scenario.
Breadth was a solid 9:1 negative today, but volume was picking up as we approached the lower support levels, but not enough to let us break through today. We should target around 1300 in the $NDX whether we are tracing 1-2s or a triangle, but either way, we should not breach yesterday’s high. I wanted to toss out the ending diagonal as a prospect most people have not considered. As it stands right now, this is the lowest probability of the three, but I felt it was worth mentioning.
I hope everyone was ready on that MA break of 145. We got a nice push down, and I closed out 1 contract for nice gains. I am still holding some, and will likely add again. This is a 40 point move (about 30% in the stock), so I plan to take it as a couple of trades. Initial target is 120, and the final target is around 100. If you have not gotten in this trade, a retest of the 143-145 range would be a GREAT entry. If the trade is not for you…don’t trade it.
That is all that I have tonight…hopefully I can post a few more gems tomorrow. In the meantime, tell me what GNK, BG, FSLR, MA, ICE, CHK, and CCJ all have in common. I am really curious as to how you will think they relate.