Complete Wednesday Game Plan

Markets rebounded Tuesday as once again the Nasdaq bested its chief rival the S&P 500 gaining 1% and taking out the round 3800 level. Lets look to see some follow through with the S&P 500 as a bounce off the 50 day is good as long as it is accompanied by strong volume. Interesting and perhaps a tell that the market went higher with the government shutdown upon us. Perhaps people are not fooled by this as much as the media was shoving it down our throats. Markets do not always crater on such events. Perhaps the benchmarks discounted this as they have sold off recently, however they normally do so much further in advance. Remember the market is always smarter than us. Respect its price action first and foremost, ignore it at your own peril. The greenback was affected by the shutdown and continued its decline today as the UUP is on pace to lose ground possibly for the 8th week in the last 13. Its loss was energies gain as the XLE found a bid at its 50 day SMA. Volume was adequate on the bounce, not optimal. Would have liked to seen more conviction. Trade could come in the next few sessions. Keep in mind to play the strongest names in the group which include CXO CRZO EOG PXD. Perhaps the bearishness is fading. A quick peek at the SDS chart shows at least for the time being its 50 day SMA has acted as a buffer once again. It has been a very simple and accurate indicator thus far, but once a line is touched so many times it is bound to break through. Complacency can be an expensive noun.