Financials and Commodities step up on the first day of trading in the New Year. Lots of gaps higher which if this market is any good, should hold. The classic leading sectors/groups at the end of 2011 comparatively struggled -retail and biotechnology for example. And semiconductors, technology andtransportation did ok, however, underperformed the indexes. And volume? Yes, an accumulation day inSPY and IWM yet barely one in QQQ, even with AAPL and GOOG strong.
SPY: This was a breakaway gap potentially, provided today's low holds. Still have some resistance at October highs. Good news is we are starting off better than many anticipated and not overbought. Subs-pivots positive in all indexes and ETFs.
QQQ: Breakaway gap doji day-how interesting is that? Neutral slope on the 50 DMA which puts this back into an unconfirmed and kind of weak bullish phase.
IWM: Weak link until it clears 76.20.
ETFs:
GLD Impressive gap and hold. Still has room to overhead resistance at the 200 DMA 158.00.
XRT (Retail) Subs: Pivots still positive at 52.82 and would like to see 52.25 hold.
XLF (Financials) Got to 13.48, now want to see that clear or back to 13.20 before we can know what this is made of. Subs-if you wanted to know when I use the 160 EMA as a layer, today was the resistance there which worked well.
IYT (Transportation) 89.65 the 200 DMA support. Strange day in this sector since it opened on the highs, closed on the lows.
IYR (Real Estate) 58.20 did not clear on a closing price yet the 200 DMA did. Big eyes on this for follow through or failure.
IBB (Biotechnology)Busted through the top of a channel. As it approached overbought, would like to see some work and digestion before willing pay up.
SMH (Semiconductors) Could not get through the 200 DMA making this worrisome. Through 31.50 would impress. 30.25 next key area to hold with a break of the last swing low 28.69 trouble.
OIH (Oil Service) Slope on the overhead 50 DMA pointing down even after the gap higher. Great performer, but not convinced this is more than a bear market rally at this time.
Long Picks: Still working off the master list from the webinar and 3 new ones to look at that are not approaching overbought. A nutty start so indexes and ETFs key focus.
EL Not a great close, but does have positive pivots at 113.29 and good risk to 111.70, the 10 DMA. It also has 2 days under the pivots. Potential on weekly chart to 120, so watching how it opens and setups.Day to Short-term Swing
WDC 30.00 max risk with positive pivots at 31.19. Over 32.40 levels, clears the 200 DMA and looks poised to 40.00. Day to Swing
SPG The charts are definitely weird looking after today but this one worked off overbought conditions with positive pivots at 129.77 and max risk to 127.25 for now. A close over 131.00 will be a new high close and could take this to 140-145. Day to Short-Term Swing
Honorable Mention: Positive Pivots OR Reversal Candidates: PRU HOG BIIB UPS JBHT JNJ EXPE
Shorts: Also whacky charts so narrowing down focus. DRI was a short that never gave a moment of pain.
HLF Positive pivots 52.70 53.35 but back on the list since it stopped at the 200 DMA and not oversold. Must now break S1 and the 10 DMA which line up at 52.05. Then could see 46.50 next. Day to Swing
UA Closed just under the 200 DMA at 72.38 and has positive Pivots at 73.06. Want to see this break S1 71.11 then could see 69.69, 12/21 low before next support 67.00. Day to Mini
CRM Also positive pivots at 102.69 but weak close. Under today's low, breaks the 10 DMA and could see return move to 94.00 and possibly 83.50 next. Day to Swing
LRCX Negative Pivots at 37.08 and cannot clear 37.80. Closed under the 200 weekly moving average and has support at 34.80 recent weekly lows. Under that could get to 32.00. Day to Swing
Honorable Mention: RRC (has not broken the 200 DMA but Negative pivots at 62.05. The 200 DMA is 60.48.) DMND (Cannot clear 34.00 Must break S1 31.61)
Goodnight!
