Thursday's Stocks Heading Higher After Dow Gains For 2 Days
The Night Owl Trader | Oct 20, 2016 01:43AM ET
The Hoot
Actionable ideas for the busy trader delivered daily right up front
- Thursday higher.
- ES pivot 2135.67. Holding above is bullish.
- Friday bias uncertain technically.
- Monthly outlook: bias lower.
- YM futures trader: short at 17,670.
On Wednesday, the Dow continued its recent pattern of early gains followed by significant retracement. Once again after a triple digit gain out the gate we ended with a modest 41 point gain. It looks to me like a lack of confidence in the market as traders want to book early gains and are fearful of letting anything ride. Not exactly the most optimistic environment. Tonight we review the day's charts as always while I studiously try to avoid any mention of the third and (thankfully) last debate of the clowns on TV tonight.
The technicals
The VIX: Tonight I bring you again the VIX chart I showed last night (plus one more day) when I said that there was more downside on they way. With another 5.69% slide Wednesday, I say to you now: QED. The VIX is now in full-on headlong retreat mode. In fact I'd call it lower again tonight were I not so afraid of angering the gods of hubris.
Market index futures: Tonight, all three futures are higher at 12:21 AM EDT with ES up 0.20%.
ES daily pivot: Tonight the ES daily pivot rises from 2130.67 to 2135.67. ES remains above its new pivot so this indicator continues bullish.
The Dow has now shown us two days of gains and a completed bullish stochastic crossover with indicators all rising. And after a lackluster showing Tuesday the trans handily outperformed the Dow on Wednesday. Add in a VIX that shows no signs of wanting to go higher plus rising futures in the overnight and I guess I'll just call Thursday higher.
YM Futures Trader
No trade tonight.
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