Did the market hear me or was it just obvious that the doldrums would come to an end and move in the direction of the phase with just a little more patience? Thank you market for giving us volume, follow through on both the move and gaps, and lots of active trades to choose from.
S &P 500 (SPY) Not overbought and well positioned over the October high. Volume also posts another Accumulation Day. That makes 3 in the last 2 weeks.
Russells 2000 (IWM) This didn't make it easy, but to its benefit, gave us lots of time and opportunities to respect the breakaway gap on January 3rd and get long.
NASDQ (QQQ) Up 8.4% YTD after the breakaway gap January 3rd. First one to clue us in, now could be first one to get overbought-but dips are buy opportunities.
ETFs:
GLD* Wrote yesterday "161.65 point to clear". Today's high 161.64. Watching closely this to gap through the triple tops or, possible still, for this to rollover.
XRT (Retail) The moral of this story is that when next direction is unclear, stay away. BUT, once the direction is obvious, jump in with both feet.
XLF (Financials) Unless this gaps under 13.58, looks likely to cross the 200 DMA at 13.94 with recent high 13.97. Then 14.17 the October 27th high.
IYR (Real Estate) Not the first choice after today's activity since major overhead resistance still resides at 60.00.
IBB (Biotechnology) Thinking that 116 (or real close by) is a good place for this to take a breath
SMH (Semiconductors) If you see "Inside day"-that is a signal to follow the way the range breaks thereafter.
XLE (Energy) 1 close above the 200 DMA. Do I hear 2?
TBT (Ultrahort 20+ Year Treasury Bonds) Yesterday I featured the TLTs. But today, we boughtTBT as a starter position against 17.90 once it broke the 30 min OR and R1. Now, it filled the gap to 18.35 closing just above. 18.99 is the 50 DMA-reasonable target.
Longs: Please double check for earnings on anything you are holding. FCX reports before the open for example. Have to wait for some new setups since many approaching overbought.
VFC Had what is called a range expansion day which is why we did not buy-risk to lows was too great. Negative pivots at 132.46 and underperformed the market therefore not out of the woods. Stay flexible on this meaning, if holds pivots and has OR breakout would consider a buy with risk to under pivots. Could see 142-143. Day to Short-term Swing
SPG Had an OR reversal and now positive pivots again tomorrow. Did underperform the market as did real estate in general so watch IYR carefully. Now could risk to under S1 127.84 to see if this can rally on to 135.00 Day to Short-term Swing
NSC has 2 inside days in a row and is a quick trade since reports next Tuesday. Neutral pivots at 76.16 so like to see today's high clear which also clears R1. 78.50 recent high and perhaps can see a quick pop to 80.00. Day to Mini
Honorable Mention: Must Now Clear High or R1: COG* (68.00-returns above the 200 DMA) Pivots OR Reversal Candidates: X ESRX PXP PRGO EL DLR NFLX
Shorts: DAYTRADERS only: 2 stocks have negative pivots tomorrow after 11 days closing above the FTPS and could be a short if market weakens for a quick move: CAT COF
DECK (NR 18) Negative Pivots at 83.98 and cannot clear 85.10. These days, when those points that I write should not clear, do-the short picks have reversed. Something to keep in mind. Otherwise, a move down to 75.50 possible. Day to Short-term Swing
CERN Reports February 7th. Negative pivots and under the 200 and 50 DMA. Plus inside day. Under 60.50 could see 57.00 the 65 week moving average or perhaps lower. Risk is 61.20. Day to Short-term Swing
PANL Inside day negative pivots at 40.61 with risk 41.38. Also under moving averages yet has some support at 37.00. Once that breaks, could see 34.00. Day to Swing
Honorable Mention: GDX (Inside day Risk 53.58)
Goodnight!