What Should I do When the Market is in a Holding Pattern?

On today’s video I outline a potential long trade set up in the stock Quintiles Transitional Holding (Q). I also discuss the E-Mini S&P 500 (@ES.D) and Crude Oil (@CL) futures markets. Be sure to watch the video for all the details and I hope this video helps you in your own trading.

 Quintiles Transitional Holding (Q) – In a Holding Pattern

The one stock I am taking a look at today is Q. Quintiles Transitional Holding. I had never really heard of them, but, they came up in a scan today. I’m looking for those compressed stocks at a support zone that are ready to break out. As you can see this stock is trending up. Was trending up, right? Now it’s kind of in a holding pattern here. Similar to the overall market even though this is broken down a little bit more right? We broke down through this trading range. We are getting close to that grey support action zone.

I am thinking if the market’s able to break up through yesterday’s high of 5173 the market could move higher. Of course, if it is not able to break up through the high then there is no trigger entry. So, we will keep this on our watch list to see what’s happening.

[Tweet “When in a holding pattern, sometimes you just have to wait and see what the market does, but have your stops in place.”]

The S&P-500? Also in a Holding Pattern. 

The S&P-500 as you can see is definitely in a holding pattern. This is ready to break either up or down right? This is the highest high. All time high. We came within a point of testing that on Friday and they came down a little off that. So again we are in a holding pattern here, waiting for the market to make a decision on where it wants to move right?

So, if you are day trading there are always plenty of opportunities. If you are a swing trader, I think at this point you really have to wait for the market to tell you where it wants to go. Of course if you are more bullish that’s fine, but anybody looking to put on any type of position in here needs to have their stop. 

If short, if you are bearish and you do not think the market can move much, and you do not think the market is going to break up, then, of course your protective catastrophic stock needs to be above the all time high.if you are bearish and you think the market is going to go lower, you absolutely need to have the right stop in place.

If you are bullish and you think the market is going to make another move to the outside then your stop’s got to be placed below the low.

Crud Oil Not Budging

Let us quickly look at crude oil. Crude oil doesn’t seem to want to move any further. We’ve got three consecutive days now with pretty much equal highs. Look at that–Friday’s high, yesterday’s high, and so far today’s high. Today rejected yesterday’s high and we are trading down off the high considerably. So a big level here, in order for crude oil to move to a higher mark, the crude oil needs to break up through 129 which was yesterday’s high. We went up to 122 today and again rejected that level and we are down to 98.99. So we will see what happens.