Wednesday 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.

The big roller coaster of 2015 continues and the key levels largely remain where we plotted them in mid January. On the upside we have 2055 separating the bulls from a run higher – on the downside there’s a rising diagonal which now roughly extends to 1980. Being caught anywhere between will most likely result in getting taken to the woodshed and I recommend you keep your powder dry until we either get closer to 2055 or 1980. Now being short near 2055 for a few handles can work just famously but make sure you are disciplined with setting your stops and not getting over exposed. The odds here now hang in the balance and this sideways mess could resolve either way. Hey, I told you in December that 2015 would be a tough year for equities – did I promise too much? 😉

Now the NQ is offering us the best short term context this morning. A long here above the hourly NLBL at 4211.25 could carry us higher, but it is still early in the game and I recommend a maximum of 1/2R if you grab this one. Stop below 4195 and if it triggers I won’t be short as the 100-hour SMA is now starting to swing higher. The bears are now facing rising ST support and as I suggested on Monday – every day and handle higher now decreases what just a few days ago looked like a AAA opportunity to the downside. But that’s how it goes – failure to resolve a clear and present opportunity comes at a cost and is usually followed by an inverse squeeze.

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Cheers,