Daily Commentary: May 20, 2024

Auto Post1Option Commentary

Your 2 Week Market Game Plan

Posted by Pete Stolcers on May 20
www.oneoption.com

Here’s what I expect the market to do for the next couple of weeks.

PRE-OPEN MARKET COMMENTS MONDAY – Overseas markets were up marginally overnight. The fact that the market did not retrace much after the breakout Wednesday is a bullish sign. We still could see a little selling pressure so we can’t get overly excited. The dip late Friday and the bounce on good volume tells me that buyers are still interested. I am expecting a light volume float higher for two weeks. This is not a market we can get aggressive with. We have scaled into bullish swing positions from the bounce off of the 100-day MA and I would be comfortable adding here. Our average cost is much lower. Expect tight intraday ranges.

This will be the final leg higher for the bounce and as the momentum starts to stall out in a couple of weeks, I would take gains on swing longs. Light volume and compressed tiny bodied candles will eventually lose the upward momentum. Watch for this.  This is “musical chairs”… don’t wait for the “music to stop”. For detailed market analysis, watch this video.

Live Trading

Open an Account

Paper Trading

Register