DAILY MARKET RECAP
Monday May 23, 2016
The following is be used for Informational purposes only. The charts are fact, however my interpretation is an opinion which I am sharing with readers. None of this is a recommendation to buy or sell anything. You must do your own due diligence.
Key Developments :
- Absolutely Nothing new to talk about.
- Very weak close, but still an inside day
Going to be short and sweet today everyone, as I did a ton of writing over the weekend and today changed none of it.
Today was one of those boring inside days, and I don’t think it worth spending too much time as the market did absolutely nothing. I personally tried to trade what looked like a H&S around 11am and bailed when the mini reversal appeared. I spent the rest of the day working on my watch-list.
As I said, I did a ton of writing over the weekend, so if you didn’t get a chance to read the articles here they are.
Right now, we need only watch this larger pattern for further signs of failure or re-triggering.
You can see the inverse H&S just above the neckline of the larger pattern. That is my focus right now, failure or triggering of that pattern.
That being said the Russell was unable to hold above yesterday’s highs so I went out short IWM looking for some follow through in the morning. Remember my sweet spot to short is when I start to see a right sholder roll over, and this still very well may be just that. My risk is a 1% gap up in my face and I will have to cover for a loss. However if this is indeed the right shoulder there is 6% of downside. That’s trading.
The Bottom Line:
Today was a low volume inside day (traded between Friday’s high and low). The earlier you can identify these kinds of days, the faster you can get out of the way as the algo sharks will eat you alive. At this point watch the mini inverse and the larger H&S pattern to see which will trigger first.