Equities gapped way down this morning, taking out the support level I was talking about yesterday. It might have something to do with Russia’s invasion of the Ukraine, but I’m not sure. I’m not really looking at fundamentals. That being said, with a gap down, I wouldn’t be surprised to see the gap fill, but that would just make for a nice re-test pattern. I definitely see more weakness here, so I’ll keep that in mind today.
Looking at Forex, I already cancelled my NZD/CAD order because price dropped considerably and never broke to the upside. On the other hand GBP/NZD did break up (similar to CAD) but has pushed down back in between my entry & stop. I left that one, since it still looks weak to me. I’ll cancel it tomorrow if it doesn’t go anywhere. — Looking here again at 11:11, price has pushed up again and well above where my stop would be. It’s the second push up over that level, so I’ll cancel that trade, too
Looking at the other pairs I was monitoring this week, everything moved in the opposite direction, strongly, than I expected today. I don’t want to take a counter-trend trade, so I think I’m just going to sit out of Forex until Monday.
Looking at options, while the market is dropping overall, the VIX is up and there are a couple of things that look ok. I think I’m also going to use the sizzle index or whatever it’s called on TOS to get some ideas today. I’m trying to get a trade in every day, even in a practice account, so I’m going to keep looking for today’s opportunity
CDEV — Centennial Resource Development — Energy minerals company has been largely pushing up since November of 2020, and today there’s been a huge up-push. Looking at the hourly, it gapped up and continued to push up, now being up 7.23%. Also, price isn’t in overbought levels quite yet and the bands on both the hourly and daily chart are just showing signs of expanding. I like this a decent amount, the only thing giving me pause is whether this is going to fill the gap or not. It’s been pushing up so strongly, though, that I could see that not happening for a while. I’ll run the numbers and see if I like it here
Update, I haven’t ran numbers in the last 20 minutes or so, but looking at the chart now and price is pushing down. I’m reminded that I don’t take a trade without a pattern, and while I liked a lot of this, I didn’t actually see a pattern (just the initial, huge, breakout). I’ll hold off here and check some other stocks out.