Wednesday, January 20, 2010
ENTANGLING TERRAIN
HERE WE GO AGAIN…RANGE COUNTER IS AT 15
If you recall, during mid-November to mid-December last year we had a range counter that counted the number of days that the futures were stuck in a range. The range at that time for the NASDAQ futures was 1763 (LOWS) and 1815 (HIGHS). The range held for 27 days and then broke hard to the upside right before Christmas as we figured it would do after such an extended period of time. Now, we are back in a range. This is why I have classified the market for the last several days as “Entangling Ground”. It is entangling because those who swing trade big charts (such as myself) either have to revert to trading very small positions or not at all. Of course, the best path is one of least resistance. Resist the urge to trade and wait for better opportunities. As I have been saying the last several days heading into earnings season, every day can bring about some “noise” that the market has to digest. Today is no different. My one big caveat for mentioning AAPL as a trade yesterday was IBM earnings after the close. IBM sold off, AAPL sold off, and the tech sector sold off. There are other factors for all the red today but suffice it to say, “here we go again.” Have fun day traders as our day will come again soon.
The current NASDAQ market range is 1900 on the upside and 1845 below. Let’s see if tomorrow we revert back to the big up day (may depend on GS earnings–the next BIGGIE to report). Personally I would like to see us head back to the 50 TANKS on the DAILY NASDAQ futures (1820) and the break out support of the S&P DAILY futures (1110) which could then provide us with several potential upside trades. But, who am I? Just a trader waiting for opportunities and getting rid of a few positions that are not worth keeping.
BATTLES WON (PROFIT TARGETS HIT): NONE
BATTLES LOST (LOSS TARGETS HIT): JOYG
SURRENDERED (TRAILING STOP HIT):WYNN
NO NEW ENTRIES TODAY.
