Friday Morning Reads, Charts, and More

Friday Morning Reads, Charts, and More

News and Reads

Support Matters

Wealthy Speed

More Macau?

Samsungs $3.5 billion loss?

Bond Flows

Daily Recap

The Hunting Economy

Orange Juice Scam

The Perfect Storm

A Wild Ride for Musk

Higher Yields We Go

Banks Junk

Brexit Risks


Breakout Coming?

At Support

Key Charts

Bearish Set Ups


Recap and Outlook

Morning Watchlist

More Charts

Bull Flags

Bear Flags

Momentum Scan

Head and Shoulder Scan

Uptrend Charts




Today was quite the reversal for the market. In the morning the market plunged down to fresh lows in the 211 range. Soon after it started to make its way back up to close only slightly down.

In the article I will post a few levels to watch and different trades in a few stocks. First, a note on intra-day trading and trends. There are a few times throughout the day when I look for trend reversals. First, its at the open. If you see a huge thrust one way or the other at the open it is usually a sign that the bias will hold for the whole day. The next is 10:30. Sometimes there is a ‘shake-n-bake’ to get people out of positions and then an immediate reversal. This is a good time to trade off of support/resistance. Lastly, its 3:30. A day like today, I after 1-2pm we got the idea that the market was going to bounce into the close, the trend was higher for hours and we saw a lot of hammer candles forming. However, premiums were starting to increase with this reversal. Many times the trend will form and then reverse near the close like it did today. This is why when the market reverses one way or the other I like the wait until near the close and see if the candle ends up being bullish/bearish and whether it lines up with momentum.

For example, today the market sold off into the close but the candle was still relatively bullish in many names, like SPY and AMZN. However the MACD in both is negative. To me, this means there is an unnecessary risk in going long overnight, rather the r/r is better to see if there will be a trend reversal tomorrow. Most likely, if the market bounces tomorrow morning it will stall near the 214 level, which doesn’t give much room for upside. However, if lets say the MACD was positive and the candle was bullish, it would make me more likely to buy because momentum was in my favor and the market was less likely to stall.

Slight negative bias. With today’s bounce at last months lows I think it could be forming a rectangular box patten. This means the spy will trade between 211-217. I would play this using either an iron condor or a butterfly. Given the broken wedge, there should have been a stronger reaction in the market if there was going to be a breakdown.

Today was a picture perfect double bottom at 211.24. I would use that as a pivot point, as a break of that should bring more downside.


Wedge pattern


Retracements to watch



Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

More Posts by UPB: View All | Private Twitter Feed: Access Now! (For Diamond Members)

Leave a Reply