So far it's a slow news day, post Easter, as some countries and banking systems remained closed for an elongated holiday weekend. The middle of this week should not be so tame as it will sport U.S. CPI (Weds pre-Open), Feb Minutes (Weds afternoon) and Producer Prices (Thurs pre-Open). The most interesting index is Nasdaq and in particular, QQQ, which will be pin-balled with the mid-week news blast. The chart below is our roadmap with three key levels providing support. What that means in terms of trading is that breaking support is tradable at each and every level shown. We will be providing QQQ option positions if and when those levels are breached. QQQ Hourly QQQ Hourly is our shortest-term actionable trading chart. Note that it is on a trend model Sell Signal (Apr 5th) and in danger of breaking down below its first shown support level at 313. Breaking support just after a system sell signal is a high confidence trade. Doing so in front of CPI Report and Fed minutes adds both additional risk, and opportunity. IWM Hourly IWM has retraced into its Fib reversal zone and could turn back down into a wave iii of 3 at any time. VIX Daily Another, "trade pending," is a new Buy Signal on VIX which will be confirmed on a price breakout above $20 and the descending parallel channel trend lines. Stand by for new VIX calls on such a breakout later in the week. In Summary This week is coming in like a lamb but could go out like a lion. We are picking out spots, waiting for triggers that will present higher probability add-on trades.
