Longs:
CELG – Gap continuation
CHRW – Daily Buy Watch
GILD – Gap continuation
Shorts:
DIS – Gap continuation
JCP – Bull Trap
For Tuesday, if we gap below the 63.25 area I would be looking to take the first 5 or 15 minute sell setup at or near 10 am with a target of 62.20 area. If we open neutral and move lower I’d be looking for a bounce to go long at 10 am at or near the 63.25 area with a target of 64.68 area. If we happen to gap up over the 64.11 area, I would look to take the first 5 minute buy that appears with a target of 64.68 area. Until the market breaks out of this sideways consolidation you must be willing to take your profits quickly at the tops 63.87 and the bottoms near 63.25. The market is in a sideways movement also known as a time correction. My bias is still short, which I would prefer to short the rally’s into resistance and cover at support.
