Trading Plan for 7/21

If the inverted bearish WedEX influenced Friday afternoon… then will it also influence Monday morning? And, how?

Pattern points… (Setups and technicals)[pay]
Friday’s rally proved the bearish WedEX, in fact, had inverted due to Thursday afternoon’s plunge. The bearish posturing noticed by the signal at Wednesday’s close was accelerated into Thursday afternoon.

Not all of it. Some was simply inhibited by the falling valuations. Now those valuations have returned, since Friday’s rally ended back at the origin of Thursday afternoon’s plunge.

But expiration has ended — at least, for the purpose of rolling and hedging. WedEX is still influential, and having rallied Friday afternoon, so should Monday morning. Only one of the two timing windows tends to be aggressive, and Friday afternoon was already. So, if Monday were to extend the rally, then it should be less aggressively.

A gap back to Thursday’s close was left outstanding below, so sustaining fresh highs would be difficult. The extra time spent absorbing dips was probably related more to expiration, and less to accumulation. Ignoring any bullish bias Monday in order to dip again would be more bullish than trying to extend higher without delay.

[/pay]What’s Next… (Outlook and opportunities)[pay]
Saturday’s Strategy Session will begin at 9:30am ET. We’ll end a little before one hour. So, be sure to have your stock requests ready… And be sure to attend, since I’m not being told the delayed recordings may not be available until Monday — which I would assume will include the Strategy Session.[/pay]

Look for at least one update overnight or ahead of the Morning Market Tour… My thoughts on the day’s econ calendar are linked here.