On the post on the FOMC meeting I said that I thought we would see a volatile market with swings but we would end up not moving much before the FOMC meeting. . I was considering a day trade on Monday but it ended up not coming to pass. Well, the volatility I surmised that we might get did not show up on Monday... but on Tuesday there it was...
We got the bounce off of the 11,737 March intra-day low and pushed up for a nice day trade before falling right back to even. Chartists, traders, computers, were all ready to jump on this. Those who played UYG off of the low area to where the charts predictably started to fall made a nice 4-5 percentage point day trade. I did not have an opportunity on Tuesday to follow the markets so I was not one of the benefactors here.
Who cares about Tuesday.... markets closed... other than for one reason...
Tomorrow and the rest of the week (perhaps next week as well) is setting up to be a real opportunity for those that are ready for it. Tuesday's opportunities may still be out there and may prove to be much bigger over the next days/weeks.
I did my DD and will share it below with you. As always do your own as well if you want to play.
First, here are the big events this week
FOMC meeting announcement Wednesday at 2:30 This trumps all...
Earnings... see link to briefing dot com for complete list under "useful links"
W:MON : Before open (BO)
RIMM: After close (AC)
R: KBH, LEN; CAG, GIS
F: ORCL (AC)
Ok so here is my list of possibilities to play based on the charts and of course depending on the Fed...
Long:
UYG, FXI, COF (nice upturn from RSI 30 forming). See post: It Pays to Be Trendy (top posts) reg RSI.
QLD
SDTH (could easily bounce to 10 from 8.6 with good market news)
CTRP (very nice move off of oversold RSI and rising)... This is a really top company as well.
BIDU
Preferred depending on conditions: UYG, SDTH, CTRP... all of these are for trades!
Short:
SKF
FXP
QID (or short QLD)
SRS
MZZ
Many many other stocks. Technically the most intriguing overbought and turning RSI play is JRCC... if coal cools at all this could pop... but be careful coal is still hot right now... (a whole post on coal is almost done... I will post when ready)
Preferred: all: MZZ, SKF, FXP, SRS,... QID (not as overbought... but watch out for earnings), ... again depending on conditions and if they fall through support... but if the meeting is construed as negative for stocks we could fall off a cliff... almost any short will work...
For a lot of financials we are talking about hitting 2003 levels... but use stops as a snapback will probably occur.
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Remember... support is innocent until proven otherwise...
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Here is the chart for each except SDTH which is trading in range and will hit 10 or above if the markets are kind enough imo.
Long Market- If Fed indicates bullish tendencies we are oversold and market can jump
Short plays- If the Fed does not come through look out...
(short UYG)
As always do what you think is best. Perhaps these charts help...This blog is for informational purposes only. It does not give investment advice.
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