Monday, October 11, 2010

Technical Picture - Consolidation

The QQQQ's are the only major ETF (DIA, SPY, QQQQ) which have yet to close above the Sept. 30th highs. I know that the Comp has, and it is obviously more important than the ETF, but the fact remains that the Qs have not confirmed a breakout at this late date, which leaves us vulnerable to some corrective price action.

Tech malaise is obvious from the price action of many leading stocks especially in the cloud space. Many of these names are very weak and close to breaking supports. Ags are going into a bubble as crop prices move to limit highs. The corn chart below looks to be developing a H&S top.

That's all I want to say ahead of the FOMC tomorrow.

NQ Emini futures trade into the close. The first clue was the lower high after the trendline breach.

Notice how futures have moved lower AH.

The trade of the day was HCPG pick. I was wary of long setups today, so I waited. The NRIB NR7 setup was too good to pass on. Low risk of about $0.50 generated a reward close to 9 times. Sweet!

CRM - early weakness finally paused allowing for a decent entry. The target was the base it formed after capitulating last week. Took a second entry off of a NRIB but I bailed on the first sign of a reversal.


Ken said...

Nice trade on WYNN. I had an alert on 96 as well, watched it all day, but just didn't find a setup I really felt comfortable playing. So it's nice to see a place to get in from a different set of eyes.

Jamie said...

Yeah, the NRIB NR7 combo really works well. Price/volume contraction before expansion.