The last few days have given us typical examples of my favorite upside trade: the Spring. On Monday, we set up for the Spring story on the daily chart.  I wrote about it in my last post, here.  In that post, I mentioned that the 1327 area could pose difficulties for the rally, and we did see some minor supply come in at that level yesterday. But the market did not give back … [Read more...]

The potential rally I wrote about over the weekend did not materialize today.  Instead, it was obvious near the open of the US session that the market would cross the 1300 threshold that would cancel the rally. It is always important to have a game plan, but it is always equally important to know when that game plan is no longer functional.  This can anticpated in advance.  We … [Read more...]

Thursday & Friday of last week showed some bullish behavior by refusing to go lower.  Rather than continue down as expected by the 60-minute trend channel, buyers stepped in and held the market at the 1300 level.  This sets us up for a potential rally on Monday.  Watch the 1327 level.  The market may have difficulty there.  Obviously, a break below 1300 would cancel the … [Read more...]

Even though Friday's range in the S&P e-minis was fairly small compared to the last several days and was also an inside day, there were good trading opportunities. For the trader using tick charts and a momentum oscillator, there were four well-defined trade setups that caught solid moves during the day.  Two were long-side trades and two were to the short side. There is … [Read more...]

The recent rally exceeded initial targets and has been quite robust.  One way to measure the strength of a rally is by the closes.  Over the past nine trading days there have only been two closes lower than the previous day's close, and one of those was hardly a poor close.  Friday did close down, but the morning selloff was quickly checked and the market responded with an … [Read more...]