We’re in a volatile and headline-driven market. Remember, we want to approach this market with control as we see random power shifts between the bears and the bulls.
The most important way we survive in this type of market is by…
- Removing a bias – Be ready, willing, and able to deal with whatever this fast-paced market throws at you.
- Position sizing properly – It’s okay to size down and have fun in these environments, rather than adding exposure and pressure in a high-volatility environment.
The line in the sand and biggest inflection point for the S&P 500 (/ES) is $4,212.75. As long as the ES trades above this level, we could see a push toward liquidity at the daily mean and point of control (POC) levels.
In the video above, we lay out a road map for the major indexes, pinpoint key levels on the Volatility Index (VIX), and cover the setups on our focused list.
Here is our focused list:
GOOGL — As long as GOOGL holds above the $2,620 to $2,645 range, it has bullish potential. There is a key zone between $2,700 and $2,715, the daily 21 exponential moving average (EMA) and the daily 200 simple moving average (SMA), respectively. If GOOGL breaks through this key zone, look for a push to the prior POC level at $2,773.
SHOP — Looking for a reversion to the mean at the $780 to $795 range. There is a big POC level at $664, so see if SHOP can hold above the $640 to $664 range. After that, look for a push toward $700 to $730. Be patient on the downside, but if it continues to fail it could drop to the $630 range.
Stay Focused!