Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Minyanville's T3 Morning Market Call: Selling Pressure Resumes Amid Europe Concerns


It's a brutal trading environment! That's what headlines create -- get used to it. This can go on for weeks or even months.

The Minyanville - T3Live Morning Market Call is brought to you by is an online financial media network and education platform that provides active traders and investors with market analysis, real-time access to strategies, and in-depth training from real traders, real-time©. Learn more.

The type of market action we've seen can get a lot of traders in trouble. Yesterday the market rallied 10-15 handles off the lows, squeezing uncommitted shorts out of their positions. That reversal also probably sucked in some small longs as it was a "mini reversal." It did lack power and punch, but it was worth a look for a day or so long.

Today we come in down 10-12 handles basically saying "no one wins." It's a brutal trading environment! That's what headlines create, get used to it. This can go on for weeks/months. You can either embrace it or complain about it. What I would do is bring down your size and bring down your opinions..

In 2010 we went 17% off the highs of the year. In 2011 we went 22% off the highs.

Why would we stop at only 5%ish off the highs with the European uncertainty and the magnitude of the first quarter gains? Meanwhile, the US economy is not exactly steamrolling along! A 7-9% correction is very feasible.

Stocks have big moves off the lows yesterday giving us new points of references to trade against, but also making it tough to keep it tight. I would use yesterday's low as a hard stop and hard pivot in anything you're trading both long and short. Yesterday below $135.76 was a nice short in the morning, and then a decent long above it, but you would have had to take quick day trades.

Take a look at August 3 of last year. The market had a mini reversal; then look at that engulfing bar on August 4. If you stopped yourself out at the 1234 low, you saved yourself a lot of pain. Just something to take note of.

S&P support from yesterday is 1347, and the SPY low is $134.92. If you are a bit long from yesterday, you could see if this area holds. The 100-day moving average on the S&P is 1345, with the March 6 low at 1340. 1340 is the level most folks have been talking about. That corresponds with SPY $134.63 then $134ish. The very big level is 1320-1322 on the S&P.

Look to some of the strong stocks from yesterday to see if they can hold yesterday's low. If not, the market will have trouble again today.

Last night I made a an appearance on CNBC Asia, where I talked about several market-related issues and served as guest host. Below are the links to each of those segments.

Check out's Virtual Trading Floor to follow these traders and their live portfolios on real-time throughout the day! Take a free trial.
< Previous
  • 1
Next >
Scott Redler is long AAPL DNKN SPY
Featured Videos