Good morning and welcome to September. Equity futures are sharply lower, sp -40pts, we're set to open around 1932. It will be critical for the bulls to hold the market above the 1900 threshold, otherwise things could unravel all the way to the Oct'2014 low of 1820.
As I noted last Friday, equities are due a retrace of the 126pt ramp from the double floor of 1867, Target zone was 1945/30... and we're set to open at the lower end.
I am keeping an eye on three stocks.. and if they hold the target lows, it will bode well for the equity bulls...
AAPL -2.2% in the low $110s
DIS -1.7% around $100
NFLX -4.4% @ $110.00... precisely on target... at the gap.
*I will strongly consider picking AAPL-long today, especially around 11am, in the 109/108s.
I'll also consider DIS-long from the 99/98s... if price action looks okay.
I do understand why some are calling for much lower levels in the near term, but the daily MACD cycles are already on the VERY low side... and frankly, it makes for a lousy place to be short.
I'm holding to a no-shorts policy until FOMC week.
One thing is for sure... today won't be dull... but then with VIX in the 30s.... why would anyone be surprised?
Overnight China action: Shanghai comp' settled -1.2% @ 3166.
Good wishes for Tuesday trading.
8.58am... sp -52pts.. we're set to open at 1920... significantly below my target zone.
Its getting somewhat borderline for the bull maniacs.
AAPL $109s... at target.
9.40am.. opening black-fail candle on the VIX.... bears beware.