Set-ups and Game Plan for Week 3/21/16 (open)
This was one of two premium posts for members posted before week starting 3/21/16.
Last week I had a very clear bias as to where the market was likely headed. Next week isn’t as clear cut. I think there is still more upside in this current cycle as breadth has kept up very well with price. However, I do believe that there is a shakeout coming before higher prices and am more interested in selling early next week and buying into support. Note that next week is shortened with only four trading days.
Potential scenario’s:
- A gap down Monday that trades sideways to down for a most of the day would get me to initiate a short in the afternoon as I believe there is potential to move lower into the 2000 area as a first target and 1980’ish as a potential second. Should this be the outcome, I would buy the dip toward the middle or end of the week.
- A gap down that is able to fill the gap and trade sideways to higher would have me sit on my hands and continue to watch things unfold.
- An open above 2045 that is not able to get past 2052. In this scenario I would also look to initiate a short with similar targets as the scenario above.
- An open above 2045 with price able to get above 2052. In this scenario I would look for more upside to 2064 or 2070 and then reassess.
Set-ups: Given the shortened week and the current state of an overbought market in an uptrend, my main concentration will be on the momo’s that I outlined in the open interest post. However, here are a few good gems I’m also interested in.
