The S&P 500 gave us seven straight days of gains and seven new record highs. It was up nine days in a ten-day stretch. It wobbled on Tuesday, the first trading session of the holiday-shortened week. But the bulls bought the dip, as it ended lower by just 20 basis points.
Now the Fed is due up on Wednesday at 2:00 pm, which could create some volatility after a poor day of breadth on Tuesday. Despite investors bidding the indices up off the lows, the NYSE still registered a near-80% downside volume day. The NASDAQ did better, at just a 53% downside day.
But with the indices near record highs, the Fed on tap and painfully low trading volumes, it’s something we need to watch. It should create some caution among traders, even with the attractive setups we have below.
Above is a four-hour chart with some weekly moving averages. CZR is dipping to the 21-week moving average (green dotted line), which has been pretty solid support this year. It’s also dipping to the 200-unit 4H measure.
A dip-buy here may be reasonable as Vegas is really booming right now. A 4H rotation up over $99 could get $100-plus back in play. A 4H close below yesterday’s lows may beg for more caution.
Roku has been on quite the ripper and recently filled that gap near $434. After resetting down to the 10-day moving average, look for a daily-up rotation over $438.34. It could trigger a move back to $450-plus if bulls take it higher once again.
Similar to Roku. TTD has been on explosive run. The stock could need more time and make a break lower toward $74 and the 10-day moving average.
However, if we get a rotation over $77.78, it may be hard to ignore this one for a run back toward $80.
Sort of like TTD, Home Depot may be vulnerable for one more correction to the downside. In all honesty, that would be pretty darn healthy if we could get a “C” leg down to the 200-day moving average.
However, aggressive bulls are likely buying HD against its 10-day and 50-day moving averages. More conservative traders will likely wait for a rotation over $323.83.
Again, these are just some thoughts. I have been much more selective in the setups over the past month. However, the selectivity has been worth it. The quality of the plays have been much better, as anyone who consistently reads these posts should be able to attest to.
Trade them well today or sit it out if the Fed day makes it too uncomfortable. Good luck and cheers!
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Disclaimer: Charts and analysis are for discussion and education purposes only. I am not a financial advisor, do not give financial advice and am not recommending the buying or selling of any security.