Daily PM Prep - June, 11

** Preparation for Closing Session **

MARKET CONDITIONS



SPY - The morning scenario #2 was the selected path. It tried to go below yesterday´s low, but at the gap buyers came in, holding prices. We are now trading inside yesterday´s range, but this fail to move lower has some bullish implications.
1- Bullish - I don´t thing it will break higher today, but the fact that it did not fall at the open (failed to go down),  suggests the break of the down channel was good and we are likely to move higher. A consolidation today around the point of control at 164.75 level would be preparing for a break tomorrow.
2/3 - Neutral - Scenarios 2 and 3 suggests market will hold between 163.25 and 165.30. Scenario #2 would be a little more bullish than #3, but they are both in a "neutral" state. Trading at the extremes of the ranges on this scenario, long or short trades would be a smart idea. Also watch which side this range would break and play along with it.
4- Bearish - Unlikely to happen. World markets were down, it had broken yesterday´s low, everything was setup for it to drop, but didn´t. Meaning buyers are at this level. They were not desperate to sell their positions opened when the gap up happen and more buyers jumped in today.
Long Term Bias: Neutral
Short Term Bias: Neutral Bullish
Accuracy: 50%

PM Stock Selection Sheet download
Updated at 13:15

Want more information about the Stock Selection Sheet?
Legends - Click me
Read this before using the information provided in this page:
1.Educational purpose material only. Use this information at your own risk. 2.Stocks may be added to the selection sheet at any time. They are used as a guide to select which stocks I will trade and set alerts . It does not mean that I follow all of them, that would be crazy.3.The Accuracy information is for my own use only. It is reviewed after I am done trading. This is just a way for me to measure how is my reading of the market and my confidence in it. I suggest you develop your own way to do this.4.The afternoon sheet will be updated between 13:00 and 14:00
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Daily AM Prep - June, 11

** Preparation for Morning Session**

MARKET CONDITIONS

World Markets News: Asian markets finished sharply lower today with shares in Japan leading the region. European markets are sharply lower today with shares in France off the most.

Economic Calendar



SPY - World markets are all red with strong down movements, but the down channel in the SPY was broken up. Is this a fake break up?
1- Neutral with bullish implications: since we broke the down channel up, but the markets around the world are all red, this is the most expected scenarios. Prices will trade around the point of control between 163.75 and 165.30 for this scenario to be valid. It would be a bullish sign at first, confirming the break of the down channel, so look favor long trades, but allowed to take the short side as well.
2- Neutral bearish - This scenario would make me question the break up of the down channel, but still would have the 162.70 level as a resistance. Watch how it bounces from this level to measure bulls strength to determine the next likely path. Favor short trades, but be careful with the bounce.
3- Bearish - The bearish scenario is possible because world markets are all in the red zone. Bulls would be trapped because of the fake break up of the down channel, causing prices to sell off. At the 162.70 a small pull back or consolidation could happen before the market breaks down to test the 160.25 level.
4- Bullish - High of the previous day is taken out and would be the confirmation of the up break of the down channel. Favor long trades and be very careful to short at this scenario.

Long Term Bias: Neutral
Short Term Bias: Neutral 
Accuracy: 80% 

AM Stock Selection Sheet download
Updated at 9:15

Want more information about the Stock Selection Sheet?
Legends - Click me
Read this before using the information provided in this page:
1.Educational purpose material only. Use this information at your own risk.2.Stocks may be added to the selection sheet at any time. They are used as a guide to select which stocks I will trade and set alerts . It does not mean that I follow all of them, that would be crazy.3.The Accuracy information is for my own use only. It is reviewed after I am done trading. This is just a way for me to measure how is my reading of the market and my confidence in it. I suggest you develop your own way to do this.4.The morning sheet will be updated between 8:00 and 9:00
No comments:
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