S&P 500 (SPY) and Russells 2000 (IWM) now have 2 days confirmed on a breakaway gap over the 200 DMA. Major issue for many investors is the lack of volume which is causing anxiety as many are waiting for the other (bear) shoe to drop. NASDQ (QQQ) did eke out an accumulation in volume although compared to the average daily volume, is still light. We are also indicating RSIs nearing overbought but not putting as much credence into that as if commitment returns, those RSIs can climb even higher.
Subs Only QQQ have negative pivots which means that today's low must hold. If the lows break, this does not necessarily suggest the run is over, more like a pause and perhaps digestion at a bit lower levels. Clearly with GOOG and AAPL earnings coming up, major commitment is lacking.
ETFs:
GLD Now that it is back over the 200 DMA, provided this area holds, looking a dips as a buy opportunity.
XRT (Retail) Subs-Negative Pivots at 52.59 with a still negative slope on the underlying 50 DMA. At this point, one I would consider buying strength otherwise, stay aside.
XLF (Financials) Finally looking at the 200 DMA but as we approach overbought. Would be healthy to see some digestion before it can blast through. Ideally want to see the gap over 13.55 hold.
IYR (Real Estate) The hammer candle played itself out today. First close above the 200 DMA since late July.
IBB (Biotechnology) Exactly my point about how something overbought can get more overbought when the chart is set up.
XLE (Energy) Could not confirm the phase change as it did not sustain over the 200 DMA.
OIH (Oil Service) After meeting the target yesterday, closed the gap. Now, 117.30 good level to watch for support.
Longs: Watch for pre open tweets on any additional setups before the opening that come up on Hotscans and looks like a low risk trade. During Earnings Season, that is often a great way to see follow through after a stock reports. (YOKU had an OR Reversal today)
GOOG (Earnings Next Week) Inside day after holding the 50 DMA with positive pivots at 625.47 although would like to see it clear today's high which lines up with R1. Looking at 644-47 as resistance. NEVER hold into earnings. Day to Mini
VHC Positive pivots at 26.77 now after a lack of follow through on the breakout. Keeping it on the list, but an OR reversal would control risk better on this thinly traded stock. The 10 DMA is max risk at 25.50. 29.45 Last swing high and perhaps 33.00. Day to Short-term Swing
NKE (NR 121) With negative pivots at 98.18 and max risk 97.60 area. Like to see it get over R1 and today's high 98.60 to see a run to 102 possibly. Day to Short-term Swing
Honorable Mention: Must Now Clear High or R1: SPG (128.55) AAPL (423.83) Positive Pivots OR Reversal Candidates: COO* DLR TSLA X WSM ROST FCX*
Shorts:
CTRP Slightly negative pivots, 2 inside days in a row and cannot clear 23.26 the 10 DMA. Recent low 22.02 and could go to 19.50. Day to Short-Term Swing
RHT Neutral Pivots at 42.93 and cannot clear 43.25. Had a bullish candle with low volume so ok to wait to sell on weakness. Then, could see 39.19 December low and lower. Day to Swing
ANF Has slightly negative pivots at 45.01 and must not break 45.63 R1. Could see another leg down to 41.55. Day to Short-term Swing
IDCC Inside day negative pivots at 42.85 and must not clear 43.33. Could see drop first to 38.50 then 32.50. Day to Short-Term Swing
Honorable Mention: VFC (Got short today at 132.26 and now no loss stop) NTAP (Must Not Clear 35.25) HLF (Must break 52.85) GDX (Must not clear 54.65)
Goodnight!
