Inside day in S&P 500 and DIA. Nearly one in NASDAQ. A really interesting short-term trading pattern during a time when the market is trying figure out if it wants higher or if more correction's in store.
S&P 500 (SPY) Inside day with slightly negative pivots and a perfect range to follow one way or another given the return to a bull phase yet sitting on the 50 DMA.
Russell 2000 (IWM) Either recovers real soon, or looks like will test last week's low again
Dow (DIA) Like SPY, follow the range break of the inside day
NASDAQ 100 (QQQ) Tested the fast moving average, close beneath with a doji day. Positive pivots so watch S1
GLD Death cross and now inside day Subs: Stop on short now over today's high using the OR
XLF (Financials) DOJI inside day-paused-let's keep eyes on
IBB (Biotechnology) Warning and inside day to boot
SMH (Semiconductors) Has to fill the gap from 04/03 to get me excited.
XRT (Retail) Inside day here too.
IYT (Transportation) Outperformed the rest of the market.
IYR (Real Estate) inside day. 63.00 the 2011 high to clear if does not fail the 50 DMA first
OIH (Oil Services) Held up well with overhead resistance at 40.50
XLE (Energy) Inside day
TBT (Ultrashort Lehman 20+ Year Treasuries) R1 and the high of the day line up
Longs: On categories: Gap higher days we go to all categories and choose ones with lowest risk that break the opening range. On weaker days, we look at Category 3, especially if the picks hold S1, previous day lows or a major moving average and have a good risk on the reversal. The difference between Category 1 and 2 is the stock condition-a Condition 1 is strongest stock and more likely to make a parabolic move.
Note: Mainly focused on outperformers to the corresponding sector and nothing reporting within the next 5 trading days.
Category 1: (Aloha) Positive Phase, Condition 1, 2 days under the FTPs, Risk to Previous Day low, Can buy ½ over FTP and ½ over R1, Target- Day to at least 3 ATRs from entry:
N/A
Category 2: (Pipeline) Positive Phase, Condition 2-3, 2 days under the FTPs, Risk to Previous day low, Can buy ½ over FTP and ½ over R1, Target- Day to at least 3 ATRs from entry:
N/A
Category 3: (Double Up) Positive Phase, Condition 1 through 4, Positive Pivots which means candidate for Opening Range Reversal, Risk S1 or previous day low, whichever is lower unless noted differently, Target- Day to at least 3 ATRs from entry: (a couple of exceptions as pivots a bit negative, but outperformed the market)
EL Inside day slightly negative pivots must hold 62.38
PNC Must hold today's low and prefer reversal
VMW Good earnings, should gap higher-then use 5 min OR to buy or possible OR reversal
REGN Neutral pivots must hold today' low and like to see it above 123.77
LULU Must hold today's low
C Must hold today's low
V 2 Inside and narrow range days. Slightly Negative pivots must hold 121.25, take out R1
FOSL Prefer reversal against 131.00
PAY Must hold the 10 DMA 53.10
CF Must hold today's low
RHT Reversal preferred against 59.80
Category 4: (Rip Tide) Oversold (2 or more days under FTP), Condition 1-4, Needs to clear R1, Risk previous day low unless noted differently, Target- Day to at least 3 ATRs from entry:
KSS (Not a condition) inside day, only 1 day under FTP R1 and today's high correspond, must hold today low
YOKU Not oversold or a condition but in bull phase. 3 days under pivots must clear today's high
Note: TSLA made a new not quite 60 day low, but close, and closed on the highs
Shorts:
CNQ Cannot clear 32.92
ANF Cannot clear 48.36
TIF Cannot clear today's high
MOS Inside day Cannot clear today's high
Goodnight!