The Boyz are Back from the Hamptons
The Boyz bought from the opening bell and the shorts were history, not knowing what hit them.
The Angel was tested in the early minutes, then the price was a heat seeking missile aimed at the half gap and gap, and the 87 pivot. For me that’s the time to lighten up before the news hits the tape. Sometimes I may hold, but usually prefer to capture profits and then react.
It was blast off in the attempt to get five days of work done in four, and potential resistance zones of 95 area, 97, 99.5, and the 04 level all became targets. We prefer to jump back in on the breakouts, which we had as 85 + and the 91+ and again at the 97 area.
We are still in the 925/875 range, and the 900 middle target is available after the momentum knocks out last week’s 97 resistance.
Short side was scalp only as posted, and any (“reasonable”) high is possible during the first hour. We had the 04 to 05.25 as preliminary target and resistance for the morning, and the 14.5 target/resistance was possible today but with lower probability.
The daily resistance was too far removed to be significant, so we chose to focus on the 60 and 120 chart to find potential resistance levels that would be places to take profits and/or put on a contra trade.
The volume and stochastic divergence that we posted was a valuable clue, and is why we suggested tight stops on a 912 resistance. If you did take the 912 resistance, the 906 target is first. The Demon wanted to break 900, but the 903 area was suggested as probable support, and did hold with ease.
There were too many stuck shorts, and that is a recipe for disaster if you overstay late day.
Friday was a reversal day according to our system, and the month end bias may have been a convenient excuse for our beloved PPT to work their agenda.
Don’t take your stop losses too seriously. When the big boys come gunning for stops, it’s easier to be a Lover rather than a fighter.