Even though the stock Quintiles Transitional Holding (Q) was not triggered long Friday, I’m still keeping it on my market watch list in case we get a break today or tomorrow. A potential trade set up on the stock Ecolab (ECL) is setting up – be sure to watch the video for all the details. Have a profitable day and I hope this video helps you in your trading.
Q Still on the Market Watch List
The last few days of last week I was looking at the stock QÂ (Quintiles Transitional Holding). I was looking for that to really start to expand out because the price has really been contracting.
The overall trend is up and the market has pulled down into the gray action zone, so we’re at a good support zone. Prices have really been leveling out and really contracting compared to the Average True Range. Friday came within 3 cents ofÂ triggering us into the market long, but the market was never able to execute it.Â
The trade never executed to the upside, so I’m still going to keep this on the watch list. There are no earnings until about a month to five weeks from now, so I don’t see any reason why this is contracting. After contraction the market expands.Â[Tweet “When the market really gets volatile and expands, the market naturally moves into contraction, right?Enter your tweets”]
Look at theÂ E-minis which have been locked in their trading range for quite a while now, not far off the all-time high. Right now, overall market is in a holding pattern just below the all-time high.
I definitely agree with Doc. The market is going to eventually break out. When? Who knows? In which direction? Don’t really know that either. Nobody knows. But we’re going to sit, watch and wait–be patient. We’ve got to exercise our discipline. Instead of trying to guess in which way it’s going to break. We need to wait and let the market tell us what it wants to do. It willÂ either penetrate up through the highs or down through the lows. I’d like to see a close either above the highs or below the most recent swing lows to give me a sense of direction.
Watch the full video for Todd’s review of Crude Oil and the stock ECL (Ecolab), which are also staying on his market watch list.