Looking for Inside Bar Patterns

On today’s video I talk about a potential long trade in the stock Qihoo 360 Technology (QIHU). I also discuss Crude Oil (@CL) and the E-Mini S&P 500 (@ES) futures market. Have a profitable day and I hope this video helps you in your own trading.

 Reviewing Q in a Consolidated Market – Looking for  Inside Bar Patterns

Let’s take a look at Quintiles Transitional Holding Company (Q) that we were looking at yesterday. I’m going to keep this on my watch list even though it was not triggered yesterday because the market was not able to take out the high of the inside pattern a couple days ago. 

We’re coming down into the gray action zone and we’re looking for the market to bust up.  This market is definitely consolidating. So we’ll see if we can get another inside bar pattern today. Again, we don’t have any earnings here in the next month so I’m going to keep this on my radar.

A Calmer Market for QIHU
Let’s take a look at Qihoo 360 Technology. Q-I-H-U, Okay? Look at this, the market has calmed down nicely. The trend is nice to the upside. We’re pulling back. We’ve been trending up all year. The market is pulling down from a high.We’ve got this tight little unsigned pattern. We’re sitting right on that 50 X, 50 exponential moving average.

So far today the market has taken out yesterday’s low, which would mean if the market reverses today and is able to take out yesterday’s high that would be an even more powerful trade since we’ve been able to take out that low first. But that’s a ways away. A penetration through 106.29 would be the buy for that. don’t expect that to be hit today because we’re gone on the day so far, but again, I’m going to keep this one on my watch list.

Crude Oil Futures also in a Consolidated Market
Take a look at Crude oil futures . We’re looking for the market to try to take out this 125 level. 129 is actually the high in this consolidation. So we’ve done exactly what we thought, right? We knew the market would probably bounce up off that gray action zone which we have. We’ve managed to trade back up through the 250, and we’re kind of flat right in here so we’re looking for the market to bust up through the price. his is on the crude futures. 100 dollars and 29 cents, we’ll see if we can get through that. 

S&P 500 Balancing Period
Alright on the E-Mini S&P 500 futures, a daily chart, we’re basically in a balancing period. The market is consolidating. We’re really not able to move up or down. Here let’s see. Look at this. So we are definitely in this holding pattern trying to come back up to test the all-time high. Again, we’ve been consolidating for quite a while, right? Look at this consolidating here. When the market breaks, this market is really going to break. In which direction? I don’t know. Nobody knows.

[Tweet “Anybody telling you that they know where the market is going to break is just guessing.”]

Just be aware that once we do break, we should travel at least the equal amount of distance from the highest high in this range down to this low, right? So expect a break either direction. So we’ll see. Just be aware we are in a range right now; obviously with the bias to the upside so let’s be aware of where it breaks to right.

So the big numbers we need to pay attention to; 1877.75 is the all-time high, and the low of this range is 1832. So about 45 points, 46 points.