Not much has changed since the post last weekend. Russell 2000 is still holding higher highs and lows along a 130m trend. The NASDAQ and S&P have lower highs, equal lows, and a rising 50 day average. It's hard to get overly bearish if bears can't get a lower low and the Russell is still moving higher. One thing the bears have going for them is lower highs, equal lows and that typically means the force is building against the support area and will eventually break. Well that also works in reverse too if every single time bears try to break that area and can't, buyers will eventually take the reigns and break the previous high in an attempt to get a trend going. When in doubt just follow the swing points and relevant trend for your time frame.
For swing trades it just isn't the kind of environment I like to be holding positions in, but the overnight/day trading is working very well. Breaking below Wednesday's low in the NASDAQ (about 104.5) I will be looking for the QQQ to test the $103/YTD break even level. Also if that low breaks sellers will have a 65m down trend going. Same thing in the S&P, if that low breaks we enter negative YTD performance with a 65m down trend and $200 is not unreasonable. Wednesday's low is also important in the Russell as that is the current higher low in the 130m uptrend. So same thing as last week, if the trade setup is bearish then I want to do that in the NASDAQ or S&P. If it's bullish I want my focus on the Russell.
The watchlist this week really isn't the most important for how I am usually trading. I just have high beta names for the most part, if they present some good overnight or quick trade opportunity I'll take the trades. But I tend to just focus on the indices and ETFs in times like these and only a select few stocks for quick trades. That's about all for this week, thanks for reading.
-Michael
