As the week and month, one thought (ok two) comes to mind. First, if the small caps or Russell 2000 gap up over the highs, consider it a runaway gap. Second, if the Financial sector holds the 50 DMA, could be the last cheap entry for a while.
Still pondering the volatility index’s strength along with the market at new highs. Rare to see volatility explode to the upside. But, I’ve been around long enough to find nothing too surprising.
S&P 500 (SPY) New high close Subscribers: Positive pivots in all
Russell 2000 (IWM) Inside day which makes this so so ripe for that runaway gap
Dow (DIA) Above 162.79, this will be hard to argue with
Nasdaq (QQQ) New high close here and new all time high
XLF (Financials) Big eyes here to pull away from the 50 DMA
SMH (Semiconductors) Strong
IYT (Transportation) Getting stronger
IBB (Biotechnology) Resting
XRT (Retail) Called out this one last week-hope you followed
IYR (Real Estate) Good consolidation at these levels
XHB (Homebuilders) Inside day after the great move
USO (US Oil Fund) Hasn’t been over 37.50 since October 2013-finding that area resistance but doesn’t look like it for long if holds over 36.20
OIH (Oil Services) Also looking better
XOP (Oil and Gas Exploration) Over 69.50 gets interesting
PHO (Power Shares Water Resources) Looks great
UUP (Dollar Bull) 21.52 a pivotal area
EEM (Emerging Markets) Subscribers: Unconfirmed recovery phase now-not surprising with US strength, low rates
KRE (Regional Banks) Unconfirmed bullish phase
FXI (China Large Cap Fund) Subscribers: Long small position with today’s gap-has to hold today’s lows
BAL (Cotton) Subscribers: Through 55.00 could be a new long entry
JO (Coffee) Subscribers: 36.02 recent highs
SGG (Sugar) Subscribers: About to break a channel line and the 65 week moving average
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
**NOTE: Picks are all either repeats from this week still in play or ones we already have positions in.
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:
WFC We added but not enough for this if clears R1 46.20-happy to add again
UAL good to watch recent picks that corrected but are still above the 10 DMA. This has to hold 45.45
WLP Another one we liked recently with support to hold 88.20
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)
AA Had an ORR we didn’t take, but with an inside day, now a breakout its fine for a daytrade to miniswing
YUM We have the position now for a mini to swing trade after booking ½ ATR. Now, over 74.00 on a closing basis could really get moving.
FITB 2 inside days so big eyes here
Category 4: (Rip Tide) N/A
Phase Change:
CYH Watch this for a move over 42.74 the 200 DMA
JCP Gapped and now if holds 7.00 could be on its way to 8.15 or higher
OI Another one recently on list that is compressed with a move over 33.90 good with risk to under 33.45
SODA Doji candle close and with our swing stop generous, willing to give this time
GM Inside day and over the 200 DMA still.
X Confirmed Brick wall bottom –watch for entry
YOKU Reported and now over 31.20 like with stop one dollar lower
IGT Over 15.09 clears recent price congestion and will look like a base with possible move to 17.60 to fill a gap
AXL Featured the action on today’s video as a good point of how to trade slingshots-now, over 19.90 looks good
Shorts:
VXX Plan to have 2 stops ½ and 1/2
Bye For Now!
