April 17th Watchlist

Momentum for the last few trading sessions has been all over the place and we’re looking at consecutive 100 point DOW moves overnight. This makes it extremely difficult to hold positions overnight for any kind of continuation play. Many are suggesting that the market is topping. This could also be indicative of a major consolidation pattern before the next big push higher. Either way, the landscape right now is requiring intraday traders to tighten up their entries & exits and also cut down their timeframes. I would even advocate for folks to simply not trade all together until things start to become clear.

Bank of America BAC reported earnings and EPS came in below expectations pushing the stock below $12 in the premarkets. Most bank earnings have been quite subdued except for Citigroup (C). She’s taken over as the leader of the sector while Goldman Sachs (GS) has fallen to the bottom of the pack.

Beige Book is set to be released at 2 PM so watch for the market reaction to the news.

Right now traders need to be focused on the indexes and levels on the SPY. If we are able to sell all these attempts at rallies then it is possible this is the top of the markets and we start to sell off a decent amount. Then one can start looking for ideal short opportunities. If however, we simply consolidate and you don’t see the weakness across the board then trading is going to get quite difficult. All eyes on the SPY…

Make sure to register for our next FREE WEBINAR tomorrow after the close! We will be examining trading rules and the psychology behind them!

GOOD MORNING YOUNG WORLD!