Happy Fat Tuesday ladies and gents, seeing as resident trader extraordinaire RaginCajun has taken to the streets of New Orleans to partake in booze and debauchery, and rightfully so, I hope you find your way over to this humble blog. I love how MCD has always been hip the Christian crowd during lent, offering the double patty fish fillet for all of the righteous gluttons needs. Let’s get right to the profile and see what the participants are thinking, shall we?
The trading action into the close of last week was no doubt spectacular for longs, as buyers continued gobbling up equity prices like they were on fire sale. Sellers simply could not keep up with demand without raising prices. Then Friday came, we had a big storm coming, and all the market managed to do was squeeze some shorts in the AM then pretty much trade flat into the weekend. Monday the index churned along, in balance, while allowing solar stocks to set up really well and a few social stocks rip rocket higher.
Last night the Japanese ministry reaffirmed their goal to inflate equity prices, and all the excitement led the S&P future contract to put in a very wide overnight range from 1508 to around 1514 as of this writing.
The profiles give us insight into the daily candles being formed. The two most significant observations I offer you are the thinly traded range below, which could see a retest, and the level where I think we continue to pump higher. Anything in between can be interpreted as balanced trade, which favors allowing individual equities with quality chart setups to rip. So you have two scenarios leading to ripping stocks, and one that may give pause. Decent odds.
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