As mentioned last night I'll be out this a.m. until about 10 a.m. As of now it looks like we are set for nearly a half % gap up, also as mentioned last night this is not surprising given the triangle found at Friday's close. These obvious patterns, big and small have been hit with false moves in the last month about 80% of the time, the more obvious, the more likely.
While I won't be here on the open, unless the gap stays in the opening area, I won't be able to see if they fade the gap, but I'd think they would fade it to some extent. Day traders may want to use that opportunity of a gap up, watch for hints of a reversal-such as big volume with no price appreciation and then go short the gap for a quick buck as it pulls back. Wait for a reversal confirmation unless you here from me with a 3C confirmation.
The Fed will be meting later this week so there may be a range stocks stay in until that meeting unless insider information is acted upon early. Although policy is supposed to be decided at the meeting, it seems in the past that smart money has had forehand knowledge of the policy to come out of the FED, 3C has often shown this.
So this could be an exciting week. Always think defense first though. Try to imagine any situation that may arise and how you'll react now before it arises, then you have a clear , objective plan to follow should that situation arise.
See you soon.
5 years ago
3 comments:
Many of you might find this interesting...the last quarterly options expiration (June 18th)was the Friday prior to big drop in June. Monday we gapped up and closed red, followed by about 9 days of selling.
That's similar to the timeframe I talked about with the VIX options expiration with the last positive divergence.
Today we see a big morning up (might have been helped by the Fed pomo money around 10 am, not sure when this money gets to the market) and volume is starting to fade after this jump. Let's see how the rest of the day goes. I picked up some more FAZ at about 12.90 a share.
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