Yesterday we looked at the pivot level the NASDAQ transportation index is trading at. Transportation bears are being pressured today after buyers received newfound conviction from the $CSX earnings. Now let’s turn our attention to the real driver of stock market gains—the PHLX semiconductor index. It has the classic overplay for the underlay* set-up.
BEHOLD:
After successfully setting up the overplay for the underlay, semiconductors are catching a bid off the old triangle consolidation. Pretty straightforward stuff here folks—if buyers defend here we are likely to see a sharp move higher. If not, probably more chop. My gambles and bias say we go higher. Yours should conform to your own damn research and bias. Trade accordingly.
kiss kiss
-RAUL SANTOS, JANUARY 17th, 2019
If you enjoy the content at iBankCoin, please follow us on Twitter*Writer’s note – you will not find the ‘overplay for the underlay’ trade setup in any published books on technical analysis. It is a term taken from the streets of Detroit, for when a dude pretends he’s not interested in something, like a real thick girl, until everyone’s attention has moved away, then he sweeps in and presents himself as a beta cuddle/sex slave.