Focus List 8/23 - Consolidation?

Geoff Bysshe | August 23, 2011

Very light volume. Inside days in QQQ and DIA, and very close to inside days in IWM and SPY. If you look at the 60-min chart in the SPY you’ll find that the first hour of trading last Thursday has defined the range ever since.

While it may not feel like it, the market has spent the last 2 days consolidating. This means that we are likely to see a trend day within a day or two. Based on the trend and the close proximity of the daily swing lows, a down move would be the easiest to expect. But I’d be ready to follow the market in either direction because even a counter trend bounce could be significant in size.

Focus Longs:

GLD
SLV
CF
HANS
VFC
MA
ED
ORLY
SLW
SINA
KCI
PANL

Short Focus:

ADSK
ARMH
DECK
PRU
GS
HAL