There's no doubt about it we are in the midst of a market bounce.
However, there are plenty of those out there that will insist on trying to time the top of every market top and in this case every dead cat bounce instead of simply waiting for the market to provide us with the direction it wants us to trade.
With the current bounce that started in the middle of last week, I have added four positions to the portfolio which includes the 8.7% made on UPRO that I closed out for members of the SharePlanner Splash Zone. But no worries, as I have more from where that came from with 2% in gains on Ross Stores (ROST) and then two new positions that were added today in Pier 1 Imports (PIR) for almost 2% and Rackspace Hosting (RAX), which I am currently just a shade below breakeven on.
While others have struggled with the month of October, members of the SharedPlanner Splash Zone have thrived.
So if you are tired of figuring out how you are supposed to trade this most difficult of markets, then sign up for a Free 7-Day Trial to the SharePlanner Splash Zone and start trading with me tomorrow and all the other great traders that comprise of the Splash Zone. With your membership you will also receive all my alerts via email and text (international numbers too) along with access to my premium chat room.
Some solid momentum out there in the market today.
Though I wouldn't say it is a day where the bears are being significantly squeezed, they still have to ask themselves how high this bounce could go and will it wipe out the profits that they have made over the past few weeks.
The bounces are where the bears get into trouble because they hate liquidating their positions and instead they convince themselves that they can hold through any bounce the market may throw their way when in reality they should be covering into weakness, not in the absence of it.
With that said, I am watching a few major price levels going forward: the first is 1898 on SPX and the second is 1920. Holding past 1920 will be difficult for me to do as it could represent the pinnacle of a dead cat bounce and for that, I'm not willing to roll the dice on the assumption that we will break through that price level. In the meantime there are definitely some long positions that can be had on the list below of my bullish swing trade setups that I am currently following.
Here's the bullish list of swing-trade setups:Read more...
Economic reports due out (all times are eastern): None
Economic reports due out (all times are eastern): Housing Starts (8:30), Consumer Sentiment (9:55)
Are we loving this market yet?
Whether you are long or you are short, your nerves are fried. I've been both during the down turn, and both sides of the trade have their moments of difficultly and frustration. But now that the market has dramatically sold off, where do we currently stand in this market?
Do we crash?
Do we bounce?
One thing for sure, with the huge increase in volatility, I highly doubt we stay where we are.
So let's take a look at the SharePlanner Reversal Indicator.
On the daily chart you have a very overextend market overlayed on a flat lined reversal line that could flash the bullish reversal any day now.
Here's the Daily SPRI:Read more...
Economic reports due out (all times are eastern): Jobless Claims (8:30), Industrial Production (9:15) Philadelphia Fed Survey (10), Housing Market Index (10), EIA Natural Gas Report (10:30), EIA Petroleum Status Report (11)
Economic reports due out (all times are eastern): MBA Purchase Applications (7), Producer Price Index (8:30), Retail Sales (8:30), Empire State Manufacturing Survey (8:30), Atlanta Fed Business Inflation Expectations (10), Business Inventories (10), Beige Book (2)