It Would Be Healthy For The Market

Are we going to chase price or wait? Does the SPX get to 2050 first then pullback? Or are we destined to fly beyond?
Destiny has nothing to do with Wall Street as you probably know. Perception, however, has a bit to do with it.

Market View charts

Sector Performance charts

Industry Perf  1  and  2 charts
If you have the inclination to dig for data/information, here’s a link about money flow. The trick here is to “see” the flow in the charts and decide if the inflow or outflow will continue or is it about to reverse. Oh, so that’s why we need to know how to read charts!
Drivers for the coming week: certainly the dollar ($DXY) which is nearing a double top pattern, the USD/JPY which started this last upside, the VIX- still way too complacent, the SPX, DJI, and DJT as they make new highs. Recall that the AAII Sentiment Survey says that as of November 2014 only 15% of respondents are bearish… sounds to me like it’s perfect turnaround weather. We only need a catalyst, even a small negative headline about a significant data point can start a selloff.
Another way Wall Street always describes a pullback: “It would be healthy for the market.”
Considerations for the week, all on the long side: X, WLT, FLT, PANW, LMT, BIDU, AAPL…. also FB, GILD, & UNH, however, the burden of proof is on the bulls. In this environment, support & resistance have even more significance.
Earnings are still coming. < If you get blindsided by being in a trade during earnings… shame on you.
You’ll recall that last week I mentioned the possibility that should we get through all last week’s data points unscathed, which we did, that it’s possible we have a setup for a higher run into year-end. That doesn’t mean straight up… but seasonality is kicking in and it seems only a black swan event or some disastrous data point yet to come will upset the applecart.
I’m watching continuing weakness in IBB, IHF, and strengthening in XLI, XLB, ITB, XHB.… even oil may have stabilized for now.
Lots of Fed talkers this week but China will likely be the big focus for markets in what is setting up as a quiet week. Some of the key items to watch:

1) China- Starting with Inflation news on Sunday night, we will get a procession of economic reports from China: Industrial Production, Retail Sales, and Fixed Asset Investment. China is still a question mark for markets as it has been showing a slow growth pace nearing contraction. 

2) Europe-
 Still a key story in the markets. Will the markets still believe Mr. Draghi. Key economic reports later in the week: Industrial Production numbers, GDP figures and CPI results. 
Will it all be bad news is good or vice versa. It’s important to note how the markets take these headlines. 
Monday Nov 10

Watch for reaction to Chinese trade and inflation data
Happy B’day Marines!
Veterans Day ….Stocks & futures open, bonds closed
 
Wholesale Trade[Bullet10:00 AM ET

 


Narayana Kocherlakota Speaks
2:45 AM ET

Jobless Claims[Star]8:30 AM ET
JOLTS[djStar]10:00 AM ET


Charles Plosser Speaks12:30 PM ET

 

Retail Sales[Star]8:30 AM ET


James Bullard Speaks9:00 AM ET

 

  Economic Data Grid from Bloomberg.com
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About wallstreetpirate

Thirty-five years in financial services from insurance to registered investment adviser, and trader (now retired). Currently helping wanna-be traders and experienced alike as a trading coach and mentor. I've been in and around, on top of, in the middle of, and on the bottom of the stock market for a long, long time. Here's all I've learned: Trading is about behavior, psychology, and appreciating what the charts are saying technically. You can't fake it. Either you know what you're doing or you don't. And as much as this isn't rocket science, it takes knowledge and a skill set to survive.
This entry was posted in day trading, economy, position trading, psychology, Stock Market, stock market trading, swing trading, trader psychology and tagged , , , , , , , , . Bookmark the permalink.

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