Happy Halloween, Slopers! This day has been for me, both as man and child, my favorite of them all (edging out even Juneteenth). It has much to recommend it:
- You get to dress up in fun costumers
- You get to eat (or hand out) candy
- It costs almost nothing
- You don’t have to prepare any meals or clean the house
- The market doesn’t close for it
Truly a day to celebrate!
As we wrap this data-rich week up, the /NQ doesn’t quite know what to do with itself. It fell hundreds of points yesterday and gained them right back (thanks to AMZN and AAPL). My spidey sense is that this is actually going to weaken throughout the day, but we shall see.
I took my profits on QQQ yesterday and am instead focused on IWM (the small caps). The /RTY itself has just been grinding around all night long, and as of this composition, it is essentially unchanged. The key question is whether this is a base completing (keep in mind, this is very short-term) or if it’ll break down.
The reason “break down” is my preferred outcome is because this sucker is precisely at the breaking point of its trendline. It will take very little for this trendline to fail.
This is even more important because of this very salient fact: a failure of the trendline would also mean that this crucial price level, which has been tested and failed twice already, would have failed for a third time. The three arrows mark this price point, and a break from here would, I think, indicate overall and persistent forthcoming weakness.
I am coming into the day medium-heavy, and my only stinker amongst my 27 positions is RDDT, which has burst higher overnight on earnings. I have widened my stop on this one, however, because my entry price is good and the stop-loss price is still a decent distance from even the post-earnings pop, so I’m going to just tough it out.
