With all the drama surrounding techs, it's interesting to note that the SOX did not violate last weeks lows. The chart is bearish below 503.50, but keep an eye on this index. Today's action caught many shorts by surprise (including myself) and this can snowball into further buying. Conservative traders might want to step aside from the bullish wagon until we see NQ clearly get back above 1700 and the SOX above 503.50. If long, tighten your stops. For ES that would be no lower than 1313 and for YM 11360. If short from yesterday's highs with NQ, you are in the driver's seat and should lower stops to 1711. If short ES, things are getting much tougher and I would place stops at 1319.25. As for YM, scalp only.
Watch yields as you trade throughout the day. They are key to establishing positions. Short if yields are up and long if yields are down. Watch ZB June contract (30 year) for heads up.
This entry was posted
on Wednesday, March 22, 2006 at 5:42 PM.
