To gain an edge, this is what you need to know today.
Hesitation At Resistance
Please click here for a chart of Nasdaq 100 ETF (QQQ).
Note the following:
- The chart shows that Nasdaq has rallied right to the resistance level.
- The chart shows that RSI is very overbought.
- The chart shows that the volume during the rally is relatively low.
- Nasdaq is experiencing a slight hesitation. Such hesitation is common when the foregoing three conditions are met.
- It is likely that there are stops of short sellers right above the resistance line shown on the chart.
- Expect bulls to attempt to take out the stops. When stops are taken out, it can result in an explosive up spike.
- On the other hand, do not expect short sellers to give up so easily. Expect short sellers to push the pedal right here because they can have close stops and RSI is overbought.
- The future direction, when it is all said and done will come down to interest rates and earnings commentary.
Momo Crowd And Smart Money In Stocks
The momo crowd is 🔒 (To see the locked content, please take a 30 day free trial) . Smart money is 🔒.
Gold
The momo crowd is 🔒. Smart money is 🔒.
For longer-term, please see gold and silver ratings.
Oil
The momo crowd is 🔒 oil in the early trade. Smart money is 🔒.
For longer-term, please see oil ratings.
Markets
Our very, very short-term early stock market indicator is 🔒. This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.
Interest rates are ticking up and bonds are ticking down.
The dollar is weaker.
Trading futures is not recommended for most investors. The purpose of providing this information is to give an indication of the premarket activity that usually guides the activity when the market opens.
Gold futures are at $1739, silver futures are at $25.19, and oil futures are $60.12.
S&P 500 futures resistance levels are 4200, 4318 and 4400: support levels are 4000, 3950 and 3860.
DJIA futures are down 52 points.
Protection Bands and What To Do Now?
It is important for investors to look ahead and not in the rearview mirror.
Consider continuing to hold existing positions. Based on individual risk preference, on dips, consider holding 🔒 in cash or treasury bills or short-term bond funds or allocated to short-term tactical trades and short to medium-term hedges of 🔒 and short term hedges of 🔒. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges. The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive. If you do not hedge, total cash level should be more than stated above but significantly less than cash plus hedges.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash. When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks. High beta stocks are the ones that move more than the market.
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