MomentumOptionsTrading.com Midday Update for 5/20/14
Terrific Tuesday’s Turning Terrible/ 2 New Trades
Tuesday’s have been good to the bulls for much of this year and last but I have talked about watching the Tuesday trend going forward. In recents weeks they have turned mixed to bearish and a continuing trend could signal a market top is in.
The FOMC minutes are due out tomorrow and there is still a debate between the Fed heads about accelerating or staying with their current quantitative easing process. Given the recent economic reports, there is talk on Wall Street the Fed should be extending QE, not tapering.
Today’s close along with Wednesday’s action could be an important tell on how this week and the rest of May plays out.
Heading into the second half of trading, the Dow is down 46 points to 16,465 while the S&P 500 is off 5 points to 1,880. The Nasdaq is lower by 14 points to 4,111 and the Russell 2000 is getting hit for 13 points to 1,101.
The VIX is at 12.53, up 0.11, and above 12.50. The suit-and-ties still aren’t paying attention to the VIX but they could be by the end of the week.
Subscribers, check the Members Area for the current updates as there are 2 New Trades I’m recommending.