Opening Play for Thursday 7/16

7-16-2014 11-38-14 PMCommentary:


Tradesheet from Snagit










Markets in BO mode:

BOs from snagit










Good Morning Traders!

Dow trader 4 days low to high and there is a good sell short day  setup.  Obviously the small caps failed to participate and the divergence between the big cap blue chips and the Russell is one of the widest I have seen.  As the old saying goes,  the generals can not advance too far without the support of the army , and in this case it looks like the army is in full retreat.  1967, then 1959 are the two main downside levels to watch on Thursday basis the SPs.

The Yen  has intraday Buy Divergences The CD can try back up a bit further.   Cows have a daily GRAIL Buy.  Any further morning rally in the GRAINS is a shorting  opportunity.

Bonds can retest 137’20 – 23 zone.   Ten years have a nice three bar coil.  Gold and Silver may have made an intermediate term bottom on this last liquidation flush.

Happy Trading!