For whatever it’s worth, I wrote this before futures opened this evening.
I am watching for one of two possible scenarios to pan out. The first one, I feel is more likely, though not my preferred outcome. Either way, I remain in a heavier cash position than normal and am not looking to force a trade. Market is close to making a decision, in my opinion.
SPX (Bearish Scenario) – SPX retests $1340 range or possibly even as high as $1358.5 before an increase in selling volume rolls the market over to test the $1200-1202 level. This of course will time out perfectly with bad news coming from Europe.
SPX (Bullish Scenario) – SPX trades in the $1292 – $1335 range this week and it is announced that the EuroZone has been bailed out, Italy, Greece and Spain are just fine or the EZ decides on Euro-bonds and all is right with the world. The market will rally in an explosive and violent move to the upside.
Of course there is the 3rd option. A more horrifyingly boring scenario to possibly play out. The market moves sideways for the next 3 months until everyone kills themselves out of boredom. Possible, but not likely.
Anyway, here are some charts:
QCOR – I am going to continue to mention this one at every opportunity until the move completes or fails. I’ve been holding for weeks. Watch for volume at $46.
EBAY – Nice consolidation pattern beneath the highs. Rising nicely in the ascending triangle pattern. Watching for a push over $41.85 with volume.
WFM – Another nice looking ascending triangle. Watch for a volume breakout over $91.50.
LQDT – Watching $66.60 with above average volume.
TGT - Cleared resistance on just a little over average volume. Watch for a possible follow through.
(If the market decides this Spailout turns to sPANIC, here’s what I’ll be looking at first)
GOOG - Google daily chart bear flag. Half way back is $592ish. I would short losing this flag on heavy volume. Then add the full position on losing $566.
CMG – Still working inside of this descending triangle pattern. Lower your risk selling closer to the descending trend line. This one is heading lower unless some serious buyers step in and stay in.
TIF – Closed below support of $56.21. If this one breaks the $53.45 range on heavy selling volume, I’ll look to short.
Have a great night and trade safe this week,
“All I want is a little of the good life.”