The markets gapped up in the wake of the post QE2 push. Gold and commodities were the leaders on a much weaker dollar, but overall the rally was broad based with few laggards (biotechs and education). In the final hour, financials broke out of a multi-month base.However, as we can see from the chart of the S&P, we've breached the top of the Bollinger Bands and will consolidate/correct soon. Momentum is strong and the jobs data would have to be really bad in order to spoil the week IMO.
DW mentioned VMC in the comments a couple of days ago as a short squeeze play. Today, VMC gapped up, consolidated and extended a full measured move of the previous day's range. Good call!
Using the Trade-Ideas scanner - pre-defined scan entitled "Down 50 cents in last 5 min. on big volume", I found two perfect RSI divergence candidates. MUR ripped lower, bounced and then made a slightly lower low with positive divergence of the RSI, setting up a retracement long.
DLR had daily support at $55.00, so it was just a matter of waiting for price to hit the number. As depicted below, the positive RSI divergence, signals a buy at that level.
No comments:
Post a Comment