Longs: EBAY, TIF (66.25), KSS (48.75)
Breakouts: RIG>51.00, COF>49.75, NEM>64.50, CDE>29.75, WLP>66.50, BHI>52.75,
Volatility: C (R=33.00 S=32.25), NVLS (R=45.50 S=44.50)
Short: SCSS (29.00), PG (66.50), CYH (25.00)
Notes:
The head and shoulders pattern in the SPY from yesterday failed to breakdown and served as a shakeout as the SPY rallied. Key level to watch in the SPY is 137.00. Key level for the QQQ is 64.00 and for the DIA 129.70.
Currencies higher as USD plunges on strong risk appetite. With the Nikkei, Shanghai and Hang Seng higher.
Quant studies are clearly bearish.
If we open higher, which is most probably the case today I will be looking for the SPY to hold above yesterdays high. Should it not hold, my saturation shorts and volaility plays will most probably come into play. Watch the opening range will be crucial today, in this envrionment it is be to be patient as a counter trend move is likely and if it isn't then its best to wait for confirmation through the opening range. 137.00 is the key level to watch should we hold.
Watch CAT>116.40
VIX@18.00
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