• Daily Game Plan – Quiet Rally

    by  • September 17, 2013 1:57 pm • Broad Market Analysis, Bryan Sapp’s Daily Game Plan, Charts to Watch • 2 Comments

    MARKET CHECK

    Markets are slightly higher today on low volumes, as traders are positioning for tomorrow’s FOMC release.  Stocks opened near breakeven this morning, but buyers stepped in and have since pushed indexes back near all-time highs.  Tech stocks are leading the market today, as the Nasdaq is about 0.7% higher on the session.  The Russell 2000 lags slightly, up about 0.5%, while the Dow and S&P 500 are each about 0.3% higher.  Bonds are higher with stocks, as lower yields have led to a 0.6% rally in fixed-income securities.  Gold and silver are trading near breakeven on the session, but miners are higher by about 1.5%.

     

    CHART OF THE DAY

    JPMorgan Chase (JPM) – The financial conglomerate has been fairly strong this year, but JPM has since entered a period of downwardly-biased choppy action.  The shares were guided higher by their 50-day moving average since late last year, but have since given up that trendline.  Going forward, this could be a good point to trade against.  In addition to this, sentiment is near a bullish extreme, both in the options market and among analysts.  Continued weakness by the shares could spark sentiment-related headwinds going forward.

    I like a bearish entry here with a stop on a close above 54.50.  I would initially target a move down to 50, with 46 as a stretch target.

    courtesy of stockcharts.com

     

    WHAT I’M EXPECTING

    I’m stating the obvious here, but am looking for some serious volatility over the next two days.  Tomorrow’s FOMC release and press briefing should spark some fireworks, and then Thursday is loaded with economic data.  Be prepared for any outcome on the release of this information.

     

    About

    Bryan Sapp is a Senior Trading Analyst at Schaeffer’s Investment Research, where he has specialized in volatility-based options trading since early 2010. With Bryan at the helm, Schaeffer’s Volatility Trader generated a 2012 portfolio return of 70% for subscribers. This real-time option recommendation service exclusively trades short-term straddles. Prior to joining the research team at Schaeffer’s, Bryan honed his skills as a speculator by trading his own account, and playing poker professionally to pay his way through college. Bryan attended the University of Louisville, where he received his Bachelors in Economics and an MBA with an Entrepreneurship focus.

    http://www.schaeffersresearch.com/

    2 Responses to Daily Game Plan – Quiet Rally

    1. paulliu9
      September 17, 2013 6:13 pm at 6:13 pm

      up or down in the next 2 days please?

      • Brysapp
        September 18, 2013 8:33 am at 8:33 am

        Flip a coin…

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