Monday 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.

Well, if you took that TF short last Friday then you were ignominiously stop swept about an hour ago. Quite a snap back there and this is quite the reversal – perhaps the bulls are finally ready to launch their coveted annual Santa rally? So far it’s been a bit of a non-starter…

Now in terms of setups I don’t see anything of value right now. However as to not be completely useless let me share a bit of context on the equities side. The best chart thus far is the TF (again) which is currently tickling its 100-hour SMA. On the daily there’s not much to see as we’re still somewhat in mid-air. However the weekly panel shows us a stab toward a NLSL overnight which was instantly reversed. And that’s something we can use for sure – especially since the very same happened on the ES, the YM, and the NQ – how about that?

Obviously finding an entry right here is non-trivial. On a short term basis it’s possible to leverage the TF and find an hourly entry on a breach of the 100-hour SMA. The other three are limping a bit behind but should the TF lead the pack then it’s something to watch out for. So I would concentrate on finding hourly candle patterns that give us a reason to be long – or short. Obviously this spike higher does not guarantee continuation and the 100-hour should be a good first hurdle we can watch.

Finally, it’s mid December and I would caution against getting exposed too heavily right now. Things are going to start slowing down mid-week as people are embarking on their year end holidays. I’ll be extra picky with setups this week, especially as we have been doing well last week and I don’t want to test our luck or try to force things in low participation tape. See you guys later this afternoon.

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Cheers,