The morning started with a huge gap up bringing RSI and stochastics to an instant overbought reading. The market shot straight up without looking back. In fact I was hoping to get some decent entry on some dips....but never got the chance. Even the MACD failed today because it was giving all the wrong signals indicating a SELL....? So I decided not to chase the rally.
All together there are 3 wave counts thus far, so if wave 3 has completed....we should have some sideways movement or a retracement as wave 4 for tomorrow. That will be a good entry to buy on dips to catch the move up of wave 5.
The main story today is the return of the uptick rule in a months time. When this rule is brought into effect, I have a more bullish bias towards stocks because the shorts will have more difficulty beating down prices of stocks. So my suspicion is, MMs might try to beat down stocks before the uptick rule comes into effect that could possibly give us a double bottom.
Tomorrow we have the EIA report, so afterthat we should get an all clear signal to trade DIG or OIH related stocks. Crude Oil is down today because the OPEC news is over for now. We are back to the fundamentals of supply and demand for Crude Oil related trades.
My watchlist:
XOM, GS, MS, AAPL
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