Traders Corner   8 comments

Yesterday’s jump up was a pure sentiment move, with nothing in the technicals to call for it. While the S&P 500 can go up again today, the technicals are pretty toppy here. Williams %R is at 0 (on both the daily and weekly charts), which is as overbought as it can get. With the top of the Bollinger Bands right above yesterday’s close, that limits the upside “speed”, meaning any upward move will have to drag the BB’s with it. Finally, the weekly RSI is at 71, which is firmly overbought.

None of this precludes the possibility of an upward move today. In fact, an upward move today would be rather bullish for the next week or so. In fact, the McClellan Oscillator is at -16, which is on the oversold side of neutral, so there is plenty of room to run.

With all that said, I added a small position of SPXU in the pre-market at $17.00. At the moment, I am looking to sell it pre-market at $17.51, although I might move that price as the day goes on. With Janet Yellen testifying before the Senate today at 10 am EST, I would expect early trading to be light. But if she drops any hints of QE tapering in December, the markets could take a dive. On the other hand, I could also decide to just take a quick profit on the position too.

The S&P 500 levels to watch today:

UPSIDE: 1783 (top of the Bollinger Bands).
LAST CLOSE: 1782 (November 13th’s high and the all-time high).
DOWNSIDE: 1773-1775 (3 data points and October’s high), 1770-1771 (2 data points), 1764-1768 (5 data points), 1760-1762 (3 data points), 1759 (20 day moving average), 1752-1755 (2 data points), 1746-1747 (2 data points), 1735 (bottom of the Bollinger Bands), 1729 (September’s high), and 1718 (50 day moving average).

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8 responses to “Traders Corner

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  1. Marshall, I think you mentioned you were interested in CSCO. They are currently down 12% on earnings and guidance.

    Time to buy a small position?

  2. I thought the earning for TC was not bad.. why is it taking a dive today?

  3. Ed

    Why do you think TC was flat yesterday and down big today?

  4. Lynn/Ojunker,
    My guess is that overall revenue was down. Personally, I see the earnings improvement as the big thing here, because TC has had problems with that historically. But the market has been a bit more revenue driven lately. While I agree with the market doing this on a broad basis, I see TC as an exception to this rule. This is a company in dire need of fiscal discipline, and their earnings showed it.

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