$EWG $SPY $AAPL $GOOGL $VIPS $YY There are mixed markets around the world this morning with an underlying quiet and somewhat “tired” feeling. This coming after we have experienced nice multi-week rallies in many areas. Europe has been on pause this week going sideways above its most recent breakout as it waits for the ECB to unveil its stimulus package. (By the time you read this, you may already know what has been announced). How the markets respond to this will be the most important thing to watch now. Asia continues to act well as the Nikkei cut its 2014 losses in half in the last month and is basically flat overnight. The Shanghai has been quietly trading higher tacking on another .79%. Our markets made another new high on very light volume yesterday. While price is my primary indicator (because price movement is where money is made) I am somewhat concerned about the lack of volume. Volume is the gas in the engine and while it doesn’t need to be extreme to make the markets move, it should also not be “non-existent.” My suggestion is to just have less position size and simplify things to control the risk. As long as the stocks, sectors, and markets are above the 8 & 21 day exponential moving averages, try and look for long opportunities as this will still be the path of least resistance for now. If (or when) that changes, think tactical, low risk, and maybe short if you are so inclined. Good traders should be able to make money both ways if they remain objective and flexible. If the market is going to have its day of reckoning these two moving average will need to be sliced with a close below first. We have claims today and the jobs report tomorrow morning. SPY has support at $192.26 then $191.60 and gap support at $190.95. Pivot resistance is at $193.30.
Posted on: Thu, 05 Jun 2014 13:50:15 +0000
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