Monday, December 11, 2017

Small Caps and Semiconductors Still in Shorting Territory

While it was good day for Tech and Large Cap Indices it was a more muddled day for the Russell 2000 and Semiconductor Index.

The Russell 2000 wasn't able to enjoy the fruits of what was low key buying experienced in other indices. A second doji in a row gives shorts something to work with as the 'Bull Trap' continues to influence buyers behavior.

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Sunday, December 10, 2017

Semiconductor Index Offers Shorting Opportunity at 50-day MA

While most indices were able to post small gains it was left to the Semiconductor Index to post a small loss; leaving a bearish engulfing pattern at its 50-day MA and an ideal opportunity for shorts to take advantage of the new (intermediate) downward trend. In such a scenario look for stops above the 50-day MA. The flip side, if there is an early push above the 50-day MA then these same short-stops are likely to trigger an acceleration in the rally and bring fresh buyers in a new long trade; a long trade working off oversold conditions.

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Wednesday, December 06, 2017

Tech Indices Dig In At Support

It was a relatively quiet day for markets so today was more about the working status of potential trade setups.

Tech Indices are still holding to a bullish set up with both the Nasdaq and Nasdaq 100 at channel support having enjoyed small gains today.  Stops can go on a loss of today's lows if looking to take advantage of the support test.

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Tuesday, December 05, 2017

Russell 2000 Breakout Under Pressure

The Russell 2000 break of 1,520 is under threat with today's loss. Next up is converged 20-day and 50-day MA support but such a test will confirm the breakout loss and open up for a new trading range opportunity. However, a loss of 1,450 would bring the August low into play and suggest a more significant top is in play.

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