Who doesn’t love a good headline? Dow Makes Another New High! But, headlines are sound bites. Sound bites catch attention. And attention is something better paid to the upcoming holiday season right now.
End of year tax selling, lack of participation along with a mixed picture in sectors and groups, i.e. Oil and Gas Exploration and US Oil Fund up, pretty much everything else down, makes for very little reward and a whole lotta frustration.
So, deck the halls, let it snow, roast some chestnuts, find some mistletoe-trading? Leave that to Rudolf!
S&P 500 (SPY) Inside day near the highs Subscribers: Positive Pivots in all
Russell 2000 (IWM) Inside Day and not near the high
Dow (DIA) New highs-hence, the headline
Nasdaq (QQQ) Inside day close but not close enough to the highs
XLF (Financials) 21.64 the 2013 high-still
SMH (Semiconductors) 42.00 the highs –inside day
XRT (Retail) Inside day and holding over the 50 DMA
IYT (Transportation) Inside day
IBB (Biotechnology) Over 220 would help here
IYR (Real Estate) Inside day back under a channel line
XHB (Homebuilders) Inside day well placed
GLD New lows-been bearish for quite some time
USO (US Oil Fund) Cleared 35.25 with an unconfirmed accumulation phase
XLE (Energy) Has to clear 87.04 to keep going
XOP (Oil and Gas Exploration) Better if holds 66.00
TBT (Ultrashort Lehman 20+ Year Treasuries) Inside day
UUP (Dollar Bull) 21.63 the 50 DMA to hold
IFN (India Fund) Like over 20.45
EWG (Germany) Inside day
FCG (First Trust ISE Reserve NatGas) Subscribers: Brick wall bottom
SGG (Sugar) Subscribers: Brick wall bottom
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: Anything that is on this list is a candidate for a swing trade-(of course market condition is a factor) -use the max risk mentioned along with an opening range stop using fudge factor and time confirms. I suggest you decide on 1 or 2 that have a risk you like and then position size accordingly
Category 1: (Aloha) N/A
Category 2: (Pipeline) N/A
Category 3: (Double Up) Positive Phase, Condition 1 through 4, Positive Pivots which means can either buy a opening range breakout or candidate for Opening Range Reversal, with Risk S1 or previous day low, whichever is lower unless noted differently, Target- Day to at least 3 ATRs from entry: (Opening range reversals are good on anything above S1)
MCHP still holding the runaway gap. Watch for an Opening Range reversal against the 10 DMA. The 50 DMA is max risk.
P Look for an Opening Range Reversal against S1 and the moving averages
GT Inside day. Like if holds 22.55 and clears 22.82
FDX Inside day has to clear 140.44. Like to see 138.50 hold
EQT Unconfirmed phase change to bullish if holds 83.39 the 50 DMA
TXT Inside day and a candidate for a daytrade add to our long position
MAS Had the opening range reversal. Now, after an inside day, has to hold the lows
GOOG Good daytrade through the highs
Category 4: (Rip Tide) N/A
Phase Change:
PLD Inside day and has to clear37.21
BEAM 67.72 the 50 DMA to clear
K has to clear 60.88 the 10 DMA now
Bye For Now!
