So how do I handle this morning's trading? I always like to keep floor pivots for the S&P 500 futures on my main chart. Today will be no exception and I'll be looking at 1315.92 as our key pivot in the markets, finding first support at 1311.33 and first resistance at 1323.33. Then I'll also be watching the tick, the number of stocks ticking up versus those ticking down on the NYSE closely as this is a good barometer for where stocks may head later in the day.
Today I want to take a look at a setup that closely matches the one we took yesterday with JinkoSolar ( JKS), a confluence of Squeezes. We see in today's chart that Wynn Resorts ( WYNN) has been in a daily Squeeze and and just fired off a 60-minute Squeeze. We've bounced hard off our 13-period moving average, and I'm looking for a pullback down into the $123.50 area for a new entry. I like a stop here a little below our 61.8% retracement of $121.60. If this holds, we should be well positioned for our daily Squeeze to fire off long and take us up to the $127.00 area. Wynn Resorts (WYNN) Daily and Tick Source: TradeStation View Chart
Trades: Buy to open WYNN March 117 calls for $9.50, with a stop at $121.00 and a target of $127.00.
At the time of publication, John Carter was long WYNN calls.
John is a Commodity Trading Advisor with Razor Trading. McGraw Hill commissioned him to write a book entitled Mastering the Trade, which was released in January 2006. Carter has also been featured on ABC Money. He and Hubert Senters founded and run the Trade the Markets web site.
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