Good Morning Traders!
Upside breakout in indexes, Russell took out key pivot, DOW new closing highs, exceptional market breadth – all suggests more upside follow-through.
Put call ratios have been on the high side for the past few weeks….This market can get legs underneath it to create a sustainable swing to the upside.
Tuesday can lead to some classic Z day trades: Buy any morning dip, there will be GRAIL BUYS on the first retracement to the 15 minute EMA. The
market can trade on both sides of OP, unlike the open Drive type of sequence the market saw on Monday. Also, the market can wind to an equilibrium
point mid day (think 5 minute chart formation) and then resume a better degree of trendiness in the afternoon session. Let’s see how these play out.
Bollinger Bands around a 20 period simple moving average on the 5 minute chart are also a good guideline.
Check out the CHART of the Nazdaq posted above – It is just breaking out of a daily chart formation – IF price can close above Monday’s close,
follow the price action up to the next swing high marked off.
Bunds and Crude – good examples of three bar triangle breakout coils. The main difference between the two: The Bunds are overbought from the daily
swing up and the coil has formed at the top of the swing. The Crude however, may be a bit choppier as the daily oscillator is neither overbought nor oversold
and it is in the middle of a range.
The Canadian Dollar May have set a bull trap (false upside breakout on the daily charts). Silver had range expansion up and closed at the upper end of its
range – watch the 120 minute for early AM support!
Have a great Day! Linda
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