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Not only are we holding the huge gaps on the daily charts of the leading indices and sectors that were created yesterday, but we are also seeing some modest follow-through this morning. I am seeing plenty of traders who are anxious to put on hedges to play for a rollover, but there exists little evidence that a gap fill is imminent. On my video market recap last evening, I discussed the difference between common gaps, which always get filled, versus runaway/breakaway gaps, which do not.
In addition to the gap concept, continue to keep an eye on that 1332 level on the S&P 500, which we know represents the outer limits of our multi-month trading range. We have previously close above it, but now there is a distinct possibility that it will turn into support.
Top Ideas: ORCL SRCL WTW
Chess
Would you commit new capitol to any of these here before long weekend?
Yes. If I saw a high probability individual setup. I think focusing on individual setups here trumps broad market for now. We are either still in the range or about to breakout of it.
thanks chess
Chess
Whats your thoughts on BRCM?
You should sign up for PPT & 12631. We do all kinds of analysis on many different levels there that would give you a detailed plan for a name like BRCM.
Chess,
What are your thoughts on CMG’s earnings yesterday. Seems like higher commodity costs are starting to eat away at profits. It gapped down a bit but is still pretty far away from the 10 week MA. If you own at $260, are you a holder or do you move on from here?
You should sign up for PPT & 12631. We do all kinds of analysis on many different levels there that would give you a detailed plan for a name like CMG.
Chess
I am long Oracle May 33 Calls. What was your trigger price for Oracle and what is the target upside guestimate if it did trigger by now. I am a member of 12631 but they blocked my access to videos where I work. I have asked for an exception to this and should be getting it shortly. I appreciate the awesome work you and Jake do. Many thanks for your help.
Already triggered and looks good for much higher from here for a legitimate breakout.
Awesome! Many thanks!