Morning thoughts and plan 4-23-19

Its always clearest new the highs and lows of a trend to follow that trend until it changes. It is clear that the trend is up and buying any pullback lately works like magic. This is a sign that everybody sees the same thing is obvious. As a trader we can make good money in this tape. Also, as trader we need to be aware that this type of action eventually leads to a great deal of selling or a top. There is no way of knowing, when, how or why. I am not a prophet.I can rely on my experience in doing this while knowing anything can happen,

So, I have been playing both sides in buying dips and selling extremes which has been working. Holding on to longs for more and taking smaller trades out on the short side. I will know when things changes as I am following the road map. This is the edge and flexibility in short term trading.

Today, I will be watching the SMH closely as it extended and possibly short NQ off of that. I came in long ES and NQ and have sold them out.


IWM – has been awful. Watching 154.52 low and see if it can back above 155.81. The weakness has not affected the moves in other indexes.

CL and XLE – crude prices reaches new year highs and remains bid. XLE broke above 68.4 and traded 68.66. Its right by the 200 day and the next point of reference is 70.36.

XLF – made a low of 27.17 yesterday. Lets see if it can challenge the pivot high of 27.46.

XLK – continues to march higher in an orderly fashion.

SMH- i posted this chart ads it looks extended and could be vulnerable to selling. There is an open gap at 115.87 with the 8 day below at 115.07ish. 118.33 is the high. I will be watching this closely for a signal.


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