NASDAQ-100 2/2 Update
Yesterday we saw some strong bullish action with a clean-green engulfing candle on the daily eating up much of the losses ending last week. Was able to take a few trades early morning for about 150 points. This week we have a few heavy hitters reporting earnings mainly google, amazon & Paypal as well as jobs report at the end of the week. For today, I think we'll have a market reaction based on earnings. I'm going to go on a limb here and say that these companies all had great Q4's, but expect most of the market reaction to come from yearly guidance.
From a technical perspective, most of the market geared up for this week, yesterday we can see strong bullish volume and price action. We are still in the Dec 9th channel, near the top. If earnings and guidance are positive, I expect to see what happened when Apple and Tesla reported, a break of the upper boundary and a retest. If this does happen I'm looking at the top two price levels I have marked. Depending on how price forms in these levels we can expect a move higher to blue skies, or a break and a sell of to the lower boundary of the channel, again, much like what happened last week. I am prepared to take longs or shorts after the market reaction to the earnings and perhaps closer to job reports. If there is indeed a break and retest, I am looking for wicks, spinning-tops or big green/red candles to form in a consolidated manner for either a long or shorts. If the price stays where it's at now I am not entering any trades. If there is a push to the lower boundary of the channel going to do what I have been doing these past few weeks, looking for price to consolidate, and look for a long set up, these moves typically range from 100-300 points.
From a technical perspective, most of the market geared up for this week, yesterday we can see strong bullish volume and price action. We are still in the Dec 9th channel, near the top. If earnings and guidance are positive, I expect to see what happened when Apple and Tesla reported, a break of the upper boundary and a retest. If this does happen I'm looking at the top two price levels I have marked. Depending on how price forms in these levels we can expect a move higher to blue skies, or a break and a sell of to the lower boundary of the channel, again, much like what happened last week. I am prepared to take longs or shorts after the market reaction to the earnings and perhaps closer to job reports. If there is indeed a break and retest, I am looking for wicks, spinning-tops or big green/red candles to form in a consolidated manner for either a long or shorts. If the price stays where it's at now I am not entering any trades. If there is a push to the lower boundary of the channel going to do what I have been doing these past few weeks, looking for price to consolidate, and look for a long set up, these moves typically range from 100-300 points.
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