Scalper1 News
Major averages fell yesterday on mixed volume. At 2 pm EST, the Fed will release minutes from the July meeting of the Federal Open Market Committee. Some analysts think Chinaâs woes could keep the Fed from raising interest rates next month, but others see it differently. Chinaâs situation âneeds to be more brutal for the Fed to really use this as an excuse,â said Naeem Aslam, chief market strategist at AvaTrade. Waning breadth has been an issue for the market for quite some time now as declining stocks continue to outnumber advancers on both the NASDAQ Composite and NYSE, an indication of deteriorating market internals. Norm Fosback’s high-low logic index has also been signaling red flags as the number of new individual stock lows continues to well outweigh the number of new highs. Stock futures are lower ahead of the Fed’s minutes. New Short-Sale Set-Up: Tesla Motors (TSLA) has rallied back up to its 50-day moving average following a gap-down break following its most recent earnings announcement. The rally has been due to an upgrade by Morgan Stanley with a $465 price target, although it is not clear what the drivers for such a price move will be. The stock is currently trading just beyond the 50-day line, and we would use a breakdown back below the line as a signal to initiate a short-sale position using the 50-day line, plus an additional 2-3%, depending on one’s risk preference, to account for “porosity” as an upside stop. Scalper1 News
Scalper1 News