All Eyes on the ECB

It has been a very choppy market even as the major indices try to hold higher. A ton of stocks are getting battered under the surface, and big name stocks that people thought were safe have taken it on the chin. (SBUX, CMG, COH, CAT, etc.) You really need to do your homework and uncover when the intermediate trends change.

Today, all eyes were on the ECB, and they decided to leave rates unchanged. Futures initially held up well after the announcement, but I don’t think the markets will get a pass today. The Fed did nothing yesterday, but that was expected. Data here hasn’t been a disaster. It’s been slower and a bit lack luster, but not a disaster like we have seen in Europe.

The indices are are at multi-month highs so hard for the Fed to act without a back lash. But Europe is a different story. I do think the ECB needs to take stern steps in order for this market to lift any further. Watch the key resistance at 1388-1392. Upper floor support held by a thread yesterday at 1374-1376. If the intermediate trend gets challenged at 1360-1364, and we see a close below 1348-1352, it will be a tough August for the Bulls.

You can hold positions in this tape with a hedge. Trade both directions.

Disclosure: Scott Redler is long AAPL, GOOG, LVS, WMBD, and YHOO and short SPY

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About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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