I'm including all of my morning comment here from the PSW Chat Room in case you are interested in the general market commentary, trade ideas are highlighted in blue.
Good morning!
Well, same old, same old up and up action. Oil is up to $51.50 ahead of yet another OPEC meeting where they are trying to get Russia to get on board with cuts. At $52, I start liking the shorts.
And, of course, we're watching 2,050 on /ES, it's already broken on SPX so /ES will confirm that we can't short anymore (not even /TF) until the market comes back under.
2,220 was the 20% line on the Big Chart for /ES and that's up 370 from 1,850 so figure 75 points up is the overshoot (2,295, which is also 10% up(ish) from 2,080 pre-election) and 75 points down is the weak retrace (2,145) but that seems like miles away now which means, even if we do get a correction over the weekend, it's not likely to be too severe so it doesn't make sense to hold index shorts and risk a bigger rally with /ES over 2,250.
As this point, it does seem more likely we overshoot (2,295) before correcting but I can't make an upside bet (other than the DIA play above).
19,600 on the Dow is another good line to watch and so will 4,900 on /NQ
And so much for our EWJ shorts!
Dollar very strong at 101.50 ahead of the Fed and post ECB.
Big Chart/StJ - If we do not correct by earnings, We'll have to move the Must Hold line up 10% anyway.
WYNN/Rick - It's old faithful in that channel.
Speaking of old faithful, AAPL chugging along at $113 but sometimes they take AAPL up to boost the Nas before a broad sell-off so we'll watch the net volume closely.
