By: Scott Redler
We continue to get very nice day-and-a-half trades, from long to flat, then short to flat, as we have maneuvered lower the past two weeks. We have been out of macro longs since May 4th when uptrend broke and simply looking to make quick cash flow type trades.
At this time, we are all now Euro traders as this is the new market obsession. Every few months we have new relationships that traders need to learn, and with the gravity of the situation in Europe it’s important to at least understand the headlines.
We are opening lower and probably will reverse higher at some point today. This has been the trend lately. Watch 1100, which is very big support, then another huge level is 1090-1096 if we get a big move lower. Use yesterday’s low as a pivot area for both longs and shorts.
Watch the banks closely as they are very oversold. Also see how big cap tech handles their upper ranges. Currently they are still intact, but that can change quickly.
Gold Probably needs to pull in to $1180-$1190, which puts GLD around 115-116 the 20 day moving average.
This is a time for quick feet. Also, it’s a time to start putting together a list of stocks you want to buy for macro longs once this market correction plays out. We could get some great buying opportunities at these lower levels.
