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  • Morning update

    Internals are very strong and getting stronger. NQ 1108 is now support, the VIX is trading below its 10 dma for the first time in eight trading days. TRIN's are confirming. This is not a day to be short, unless we break down below weekly pivots for NQ and...
  • Open

    The Citi news gives everyone a bounce, except for retail stocks (RLX). Watch the DOW 8150 October battlegound as well as NQ 1108. The conservative target for partial profits on QQQQ was hit at 27.20, 1.9 profit or 7%, more aggressive traders will wait for...
  • Overnight session

    Watch ES 802, an important level along with 804.25, weekly pivot. Bonds are selling as is the Yen, so bulls carry over Friday's closing bounce, at least for now. Pivots: link. Nov. 23 (Bloomberg) -- The U.S. government agreed to protect $306 billion of ...
  • NDX update

    As usual, it pays to keep NDX (Nasdaq 100 index) in your headlights no matter what vehicle you are trading. While everyone was fixated on some key SPX and DOW numbers (readers got a big heads up on DOW 7484 Friday), the exact bottom was found with NDX. Th...
  • Closing hour

    As we enter the last hour, the DOW is pushing higher, once again bouncing off that 7484 level, now at 7692. There were several triggers, but the most important one was NDX hitting 1018 (see last night wrap). So far, so good for bulls, but the day is not q...
  • DOW update (mid-day)

    Yesterday's DOW low of 7506 was just a few points above the very important 50% 1982/2007 level of 7484. Today's low undercut this (7450), so the fear in the media is building as we approach the close. Nevertheless, the AD Lines and VIX do not support a fa...
  • Morning update:

    My QQQQ target of 25.30 gets hit before NQ 1021, so I am triggered long. As a reminder, 25.25 is the March 2003 close. This market rewards patience, hopefully this one will be a trade I can ride for some time. Support below 25.25 will be 25.11 and 24.72. ...
  • Open:

    We get a bump, now let's see if we go back down to close some gaps, NQ 1039.50 and ES 748.25. January oil is up .90%, but struggling with the 50 level. Internals are positive....
  • Pre-open

    DELL suprised, C might go on sale, no foreclsoures until January and buyers are steppping in pushing back YM futures well above 7600. But the main reason we could be rallying from here is how low yields have fallen, giving stocks a chance to shine a littl...
  • NQ (NDX futures) update

    I left the day expecting a drop to NQ 1021, the low was 1031.25, not quite there, but will it be close enough? The equivalent for NDX is 1018.66, as I am using the march 2003 close. There is very little, if any, premium to cash right now, so it does line ...
  • PM update (2)

    The rally fails as NQ loses 1108.75 once again. In fact, we are now trading below 1092/1095, current resistance. The downside targets set pre-open are back in play, especially if we move to overnight lows. The bond tape is the only wild card, which is mak...
  • PM update

    That ten year yield drop to 3.11% triggered some buying in stocks. NQ has jumped up to 1112.75, right at 1113 resistance (remember that 1114 stop if still short one). Bonds are always the ultimate arbiter, so for now they get our respect. Another break of...
  • Noon update

    We get the breakdown from NQ 1108.75 resistance, after a brief attempt by bulls to hold 1092.50. It should be a ride to new lows, given the internals, but it never hurts to book profits on the way. This is still op-ex Thursday and the most dangerous day o...
  • Morning update

    NQ tags the big resistance test at 1108.75. That area will be shorted, with support being 1092.50 (see pre-open, 2nd paragraph). It's quite a run from the low at 1056. Short covering will kick in above 1113. This is the time of day when retail traders buy...
  • Open

    AD lines are extremely negative, at -2300. NQ went half-way into the gap and dropped to pre-open low (1066). The VIX is at 77.78. Notice the large drop in oil, now testing the 50 area. Long term support is between 43 and 45, where I would start buying. C...
  • Pre-open

    We keep falling. NQ longer term support is around 1021, another 40 points lower, the equivalent of QQQQ 25.25. We might not get there, but it is the next level on long term charts (I have a GTC order to buy at QQQQ 25.30, I will adjust accordingly using N...
  • Close

    I step away for the day and come back to a scene of carnage. AD lines went as low as -2808, equaling the early October numbers. TRINQ (Nasdaq TRIN) registered a high of 5.37 as the Q's lose 27.20 support and settle way below the April 2003 close, with nex...
  • Open

    ES pretty much closes the gap, now we see how much of the news has been discounted. Oil is up ahead of inventories at 10:35. Keep an eye on commodities, as long as they hold a bid, stocks will hold yesterday's lows. I will be out of the office today. ...
  • Pre-open

    CPI and housing starts drop ES  to 844.75 and NQ to 1144. The important number for NQ to hold at the open will be 1136.75, the October low, with 1150.75 an interim level. VIX resistance will be 72.25 and support 66.89. ...
  • Overnight session

    Let's see if NQ can get past the 5 dma (now at 1176.75) for the first time in three sessions. Yesterday's hammer close looked bullish, but so far there is no follow through. If we do get past 1177, resistance will be 1195, weekly pivot. Support is  115...