Pretty great day in terms of shorting, 2 of the gaps mentioned were filled and one still remains at the critical 1830 level on the /ES chart as shown below. I still expect this to go but we are pretty oversold – that doesn’t mean it can’t continue but for me, the probability of a bounce of some sort is increasing. I’m not sure how they’ll play it tomorrow, could open up and churn for a few days before trying again or this maybe it. However, i still think they’re going to push a bit further soon, still aiming for a retest of 1800 – i’m going to hold on to what i have unless 1860 is decisively retaken and held.
Here is the daily chart of the /ES mini at the close of today.
You can see where they got close to the 1830 level then reversed it up..not by a huge amount but we have come down 60 points or so in 2 days which is pretty fast. Looking for consolidation first.
One thing i was reading about today is how wall street has radically lowered the bar into earnings, this will give some stocks a chance of a ‘beat’ yet again. Will be interesting to see how it plays out, Alcoa kicks it off tomorrow but they don’t usually have much of an impact these days, next week will be the tell.
Below is the /NQ on a similar timeframe, it came down hard and closed to the tick around the 3500 level. Interesting right? I’m assuming algorithms were stepping in and holding the line so to speak. Watching AAPL as always, it came off pretty good today but still hasn’t tested that 510-513 zone yet. IBM on the other hand rallied pretty well today. Lots of mixed action.
* I missed a gap on the chart around the 3400 level, there should be 3 dashed yellow lines. Either way, collection of areas that will probably auction to test whether the buyers step in en masse.
In the meantime, i came across this great little video for investors who prefer a way slower pace on value investing with some interesting tidbits by a guy called Tim Melvin. You can take the ideas and run them through FinViz to screen stuff that you like, i do it fairly often, a little extra info is always welcome.
And finally, a great little article by Josh Brown ( The Reformed Broker ) on the Nasdaq Composite