By: Scott Redler
The world thinks the market is complicated, but sometimes technical traders just use a ruler. Last week I sent out a road map to use. There was an important downtrend to watch as the market continued to put in lower highs (1213, 1173, 1131, 1099).
Each time the bounces have been sharp and quick, but very tradable.
Shorts have come in calculated areas that also were spots that all you needed were a ruler and some crayons. The computers tested even the most prudent traders, but if you used a zone you fared better. The next area to watch is 1052-1058 which is the 50% retracement. If market doesn’t hold that area (which it feels like it won’t) we could be right back at the lower range which will definitely become very complicated for those who chased this rally. Same way for those who chased the shorts below 1040, they probably didn’t hold.
We sold longs in the 1090 area and shorted the 1092 area. Entries and exits are still the key to holding your idea. Market is not acting well through earnings, and this market has no leadership.
AAPL broke important support today that I listed at 247, you can even make money short on the best stock in America if you time it right. Banks seem broken led down by BAC and JPM. Casinos broke rising channels today. Gold has been very good to us. We sold at $1,225 now it’s around $1,185, we sold GLD around 119.77 when the uptrend broke. BP is leaking again.
Keep Trading the range. Buy extremes and sell extremes. One day we will get a sustained move, but it will take time.
