Turnaround Tuesday Stakes Its Claim to Upside Fame

By Todd Harrison  NOV 13, 2012 10:48 AM

Levels of lore for traders galore.

 


MINYANVILLE ORIGINAL

Editor's Note: Todd posts his vibes in real time each day on our Buzz & Banter.

Yesterday, we offered that it was Do or Die for the Bullish Try.  We mapped levels, offered road signs, and shared that the action and reaction “in and around” the S&P (INDEXSP:.INX) 1480 level would shape the tape, perhaps all the way into year-end.

True to the path of maximum frustration, yesterday’s market was full of fits and starts before ending the day essentially where it began.  It was, for lack of a better analogy, a placeholder in the much bigger jigsaw puzzle that has become the global financial landscape.

This morning, before today’s session began, I wrote the following comments on our real-time Buzz & Banter (click here for a free two-week trial!):

Turnaround Tuesday has arrived and on cue, the early morning futures are indicated in the hole (S&P -10, NDX (INDEXNASDAQ:NDX) -22).  If you're bullish, this is what you want to see (as a gap higher would have most certainly come for sale). This is no guarantee that we'll snap higher, mind you, but it is, in my view, a necessary prerequisite.

"Per the chart we shared yesterday -- the false breakdown, or the 'drop & pop' -- we can allow for some wiggle room under the S&P 200-day at 1380. This may well be the "Do or Die for the Bullish Try" that we spoke of yesterday and I don't believe the bulls will give up without a fight.

I intend to fade (read: buy) the opening for a trade and immediately define my risk thereafter.”

I followed that script, using Apple (NASDAQ:AAPL) as my primary upside rental vehicle (also shared on the Buzz in real-time) but this isn’t about me; this is about the process and rigor involved in trying to find “the easy trade” each day and having the discipline to know when one doesn’t exist (such as yesterday).

Where do I think Apple -- and by extension, the tech tape -- can trade to?  The 200-day on each, $594 and 2664 respectively, are as intuitive an any other levels (if the 200-day holds its 200-day at 1380) but given my chosen stylistic approach of “hit it to quit it,” I will likely be long gone by the time, and if, those levels arrive.

Random Thoughts:
R.P.

Twitter: @todd_harrison

Position in AAPL