(7:47 ET): The overnight range is 1089-1094. A tight range. The recent high on the ES is about 1099 so we’re in striking distance of taking that out.
There are a bunch of earnings reports out. No economic data.
AMZN is looking very interesting right here. The stock is trading at $108 in the pre-market. This is a clear breakout over the November 2007 high. This will now be a support level for the stock. But, as you can see, the all-time high is a close at $106.69 with an intraday high of 113. So for now the market is telling us that the news is good enough to take out the most recent high but not the all-time high.
Here is my plan for AMZN. If this one pulls back to $103-104, I’m using the $100 level as a stop out and I’m getting long this stock. RSI before the spike is tame at 53 so there is plenty of momentum left for this to take out the all-time high. However, if there is euphoria today and this runs up to 112-113, I’m likely to try a short term scalp on the stock since I don’t think it will have enough juice to take out the all-time high today.
At $108, I don’t like it today. I would rather buy it higher once $106.69 (the all time-high) is proven to be in place as support or lower using the $100 area as support. Trading is tricky. Next week if the stock proves that it can hold the $106.69 all-time high $108 might actually be an attractive entry. I hope that makes sense.
The QQQQs are trading in the pre-market right at $43.50 (resistance). I like the QQQQs because the chart is so responsive to fib lines. AAPL seems like it is due for a pause at $205 with RSI at 80. So I’m not sure if we can count on AAPL to push the QQQQs up to $48 over the next few trading sessions. But, once it consolidates there is no over head resistance. If we have both AAPL and AMZN moving up the QQQQs could lift off pretty quickly.
Housekeeping: I’ve fixed the issue of not being able to see the full size charts like you could on the blogspot blog. You can now click on the chart and it will open in a new window and it will be full size.
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chartsandcoffee
