Tuesday's regular-session E-Mini S&P 500 futures (Es) auction was another quiet one, with barely more than 910,000 contracts changing hands over a 10.25-handle range. On the plus side, as long as you committed not to chase price momentum into and above 2137, as discussed in yesterday's Trader's Daily Notebook, you shouldn't have gotten too chopped up.
Before we get to Wednesday's Es trade plan, let's take a look at a couple of reader requests.
First up is Vale (VALE) . This isn't a name I follow too closely anymore due to its sub-$10 price tag. However, because it's spent the past six months above the 200-day simple moving average (the longest time spent above that reference point in roughly five years), and isn't far from breaking above multimonth resistance, this may soon be a stock worth following again.
Over a shorter timeframe, I really have no interest in trading the stock as its consolidation is becoming increasingly narrow. On an intermediate timeframe, however, I'd be very interested in following the stock once it closes a week cleanly above $6. As long as the stock holds above $5, it's worth tracking for a more meaningful break above multimonth resistance.
Next on our list is Bristol-Myers Squibb (BMY) . As many of you can probably guess, I'm not all that interested in buying down-and-out stocks that haven't even begun to build a meaningful base. However, since several of you have noted your interest in trying to catch a turn in this stock, I'd consider drawing a down trendline from the high of Oct. 10 (the day the stock last gapped meaningfully lower), and connecting it with Tuesday's intraday high. Without a close above that down trendline, I wouldn't consider buying the stock. (Bristol-Myers Squibb is part of TheStreet's Action Alerts PLUS portfolio.)
Moving on to Wednesday's Es auction, we'll begin the session with a focus on 2130.50. All trading above that figure keeps buyers in the game and provides them additional time to push their way past 2137.25 to 2138.25 and on toward 2146 and 2153. That said, please keep in mind our frequent discussions regarding the positioning of our shorter timeframe moving averages beneath our 50-day SMA. My inclination is still to sell rallies and avoid chasing any bullish intraday price momentum.
As demand dries up near 2130.50, we'll refocus our sights on 2120 to 2121. Continued selling beneath that area shines a light on 2108 and 2100.50.
Any trading or volume profile related questions can be posted in the comments section below, emailed to me at firstname.lastname@example.org or posted to my Twitter feed @ByrneRWS