Told Ya So!
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.
Before we get to our short term setups I wanted to point your attention to the VIX which fell 11% between Wednesday and Friday afternoon. This was a textbook volatility squeeze which by the way is exactly what I was suggesting in my Wednesday update: “Bears get excited – buy premium with their long puts – and all you need to do then is to drive the tape back up and drop the VIX like a rock back to 12 or lower.”
Now I’m not certain if many bears got reeled into this one but whoever loaded up on long options early last week had to watch their option premiums drop significantly at the end of the week. Nasty little game and they play it to perfection.
The spoos are pushing sideways right now and I would remain long with an eye on the 25-hour SMA.
The YM in a similar configuration – I would wait for a touch of the NLSL here.
Crude about to touch its 100-hour and that should put up a bit of support, so watch for a temporary bottom here.
The Dollar may paint a last kiss goodbye as it’s pushing into – let’s see – an hourly NLBL, its rapidly falling 25-hour SMA, and it’s sideways 100-hour SMA. Quite a bit of ST resistance here – I would definitely be long above it.
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