Keep Booking Profits on Today's Rally
And enjoy the weekend
Technical Edge —
NYSE Breadth: 40% Upside Volume
Advance/Decline: 34.5% Advance
VIX: ~$23.60
I am going to keep this very short and very sweet, because we bought with a high R/R setup in the indices yesterday and got paid nicely in the afternoon and are getting paid even more today.
What a wonderful harvest ahead of a short trading week. Cheers all and have a great weekend :-)
If long QQQ from yesterday’s setup near $280, please consider trimming half or more into today’s $287 to $288 range. Trim more at $290+
If long SPY from yesterday’s setup near $390, please consider trimming half or more into today’s $397-ish range. Trim more at $400+
If long DIA from yesterday’s setup near $333, please consider trimming half or more into today’s $337 to $338 range.
S&P 500 — ES
There are days to hunker down and trade hard. And then there are days to let the market work for you because you have a good cost basis after good prep work.
Today is one of those days.
The ES held exactly where it needed too: Active support via the 10-day ema and the 3920 pivot level.
Pushing 3990+ now, traders can manage however they’d like. Stick to the trend and look for a push over 4000 or take advantage of a 40-handle overnight rally and exit the rest. I’ll leave it up to you — and see you Monday.
ES — Close Up
The ES is riding the 10-ema higher on the 30-min chart and is now running into yesterday’s high. The 61.8% retrace of this pullback is up at 3998, giving a little more weight to 4000.
Over 4000 and last week’s high of ~4010 is on the table, along with resistance from Tuesday as 4015.
On the downside, let’s see if 3980 is support.
SPY — Daily
If long, trim $397.50, then $400+
Gold — GLD
Risk-averse traders looking for a long position in gold may consider waiting for the daily setup.
For more aggressive buyers, we have the H4 (4-hour) chart of the GLD ETF shown above, with back-to-back tight candles.
If the GLD opens around $164 and then rotates through $164.11 and stays above this level, maybe we can get a quick trade off on the long side.
Go-To Watchlist
*Feel free to build your own trades off these relative strength leaders*
Numbered are the trades that are open. g
Bold are the trades with recent updates.
Italics show means the trade is closed.
Open Positions
TLT — Trimmed into the $100s yesterday. Should be down to ½ or ⅔ positions from here. If it’s got real strength, it will hold $100 as support, and push into $104 to $105 next. B/e or better stop.
CCRN — down to ⅓ or ½ position. $34.75 is next trim spot.
Personally using $31.50 as my stop (up about $1.10 from my basis).
QQQ — long from $281. Trim to half or less at $287+ (premarket is fine)
DIA — long from $333. Trim to half or less $337.50. (premarket is fine)
Relative strength leaders →
LNG
CAH
TJX — new highs
SBUX
AMGN
CCRN
REGN
CI
MCD
ENPH, FSLR — solar has strength
VRTX
UNH
MRK
XLE — XOM, CVX, COP, BP, EOG, PXD
SBUX
Economic Calendar
