Today, all 4 indexes made hammer candles. This could be significant in that Hammer candlesticks occur when price moves significantly lower after the open, but rebounds to close well above the low. Is the market trying to find a bottom?
S&P 500 (SPY) Held an exponential moving average in its now confirmed warning phase. Subs: Must clear R1
Russell 2000 (IWM) Held an exponential moving average in its current warning phase. Subs: Must clear R1
Dow (DIA) Held an exponential moving average in its unconfirmed warning phase. Subs: Must clear R1
NASDAQ 100 (QQQ) Held an exponential moving average in its unconfirmed and weak warning phase. Subs: Must clear R1
GLD Gave us the gap lower but now holding the 65 weekly moving average
XLF (Financials) Maybe this was it-watch R1
IBB (Biotechnology) Holding onto the bull phase, which is a positive sign
SMH (Semiconductors) Held recent swing low at 33.82 and now oversold
XRT (Retail) Hammer Candle and hanging onto the 50 DMA-over today's high looks ok
IYT (Transportation) Holding 65-weekly moving average with yet another hammer candle
IYR (Real Estate) Provided 61.50 holds up, still like the chart in this ETF
XLE (Energy) Possible slingshot if confirms over R1 (Some stocks in that group too like XOP EOG had possible slingshots)
TBT (Ultrashort Lehman 20+ Year Treasuries) Possible Slingshot if confirms over R1
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: I am leaving for vacation on Wednesday therefore exepect an email from Geoff with instructions on how to enter his chat room. I am here tomorrow.
Not a Category since only 1 day under pivots, but a good condition stock and must clear R1 and Hold today's low:
ACN
MNST
COF
LULU
PNC
ROST
UNH
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:
AAP FTP at 90.23 risk today's low
TDC Like to see 68 hold and clear 69.03
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:
STX Should hold S1 29.00 and could go to new highs
YUM Inside day should hold 72.00
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:
AIG Condition 4 with 4 days under FTP and must clear 32.37 hold today's low
AXP (Not oversold) Condition 4 Must hold 57.00 and clear 57.63 R1
MAKO (Not oversold) 2 days under pivots must clear 40.84 and hold 39.75
Shorts: Day to Swing Trades. Check earnings dates although no picks report this week-all in Bear Phase and not oversold
MUR Cannot clear 53.36
ANF Not oversold. 44 area target for now unless clears today's high
BTU Should not clear 30.28
MOS Must not clear 50.71
OPEN Sometimes hard to borrow but should not clear 41.39
SOHU Should not clear today's high
Goodnight!