Tuesday Morning

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.

Interesting pattern on the spoos this morning. A tepid bounce overnight has propelled us toward the 25-hour SMA which represents the first hurdle the bulls will have to jump in order to avoid a continuation of the slide. However let’s not forget that we are still sitting on support on both the daily and the weekly panels. The daily clearly rejected an attempt to drop below the 25-day SMA yesterday – and the weekly continues to hold the weekly NLBL at 1809. Unless that one is breached no bearish aspirations should enter our thinking.

Natgas – Scott and I call it the widow maker and that for a reason. It’s temperamental to put it kindly and having learned my lessons I rarely take on more than 1/2R, no matter how brilliant the setup. Now that push above the hourly NLBL at 4.325 is looking pretty nice given the support that has accumulated below. Triggers on the chart – simple.

More morning treats below for my intrepid subs:

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Cheers,