Instead of holding overnights, I elected to observe the open and see what happens in the first 30 minutes (as always) today. For bounce names, I am looking at the insurers, and possibly some cheapies including, but not limited to, PNX, RDN, FOE, HW, and MIC. It all depends on what happens in the morning for Spiker™ classification. In the event that we head lower, you might as well hit various financials since they are still the absolute weakest sector in the S&P. We are still in a neutral range (so far) and I'd like to see some quick multi-day decisive action take place.
I want to express caution here as we approach March 2nd's opening gap resistance (which was already tested yesterday). I will focus on the 724-735 zone as overhead resistance. I won't short much unless we breakdown from the flag, but at these levels, it is too dangerous to short in large amounts. It is also dangerous to go considerably long. Personally, I found no reason to trade yesterday (as a primary swing trader), so I watched a movie (Running Scared), and caught up on reading my first non-financial book in 2009: The Audacity of Hope by the "O-Man". Unfortunately, I cannot trash the book because it was a gift from mom.
We have jobless claims at 8:30AM. The consensus is 650K, with a range of 600K to 676K. The previous actual level was 667K.
Don't forget to try the Free Trend Analysis. It's FREE, so give it a shot!
No comments:
Post a Comment