Rather dull beginning of the week in the indices. No deal breakers to speak of. The Russell 2000s held support as did NASDAQ, the Dow and the S&P 500. Notable could be NASDAQs inability to clear 92.80, a relatively solid pivotal chart point on the daily.
But then, recycling the summer light versus winter shade Dickensian quote, the light shone on several equities-3D Systems, Tesla, Google, First Solar to name a few. The frigid included several names inBiotechnology andcertain other Solars (rotation) a few of the highlighted commodities from last week especially Corn, Oil and Sugar, which still looks promising.
One rather bizarre anomaly is China-although well above the major daily moving averages, the ETF retreated significantly from the highs while several China Company stocks began to rebound. Perhaps there is fear ofrising rates-perhaps it ran too rich. The longer term charts do have a bottoming look to them. Seems, it will take more time for their country fund to play catch up with the US!
S&P 500 Looks like a healthy rest (SPY) Subscribers: Negative Pivots in all except IWM-more neutral
Russell 2000 (IWM) 117.40 area support and stopped today at some daily chart resistance from early April
Dow (DIA) Very close to new highs -trouble happens under 168
Nasdaq (QQQ) 92.80 becoming even more pivotal into Tuesday
XLF (Financials) Like this A LOT!
KRE (Regional Banks) 40.76 to clear for this to join in
SMH (Semiconductors) Sideways and well deserved rest
IYT (Transportation) Like to see today’s lows hold
IBB (Biotechnology) 250 should be the support now
XRT (Retail) Inside day and has to clear the March highs 87.53
ITB (US Home Construction) Like this over 24.25- on a closing basis
GLD 2 inside days now-could see some action on Tuesday
TAN (Guggenheim Solar Energy) Inside day
PHO (Power Shares Water Resources) 27.23 2014 high
TBT (Ultrashort Lehman 20+ Year Treasuries) TLT Weak close so time to watch the 111 level
FXI (China Large Cap Fund) One day when this clears 38 on a weekly close, China will be the talk of the town
SGG (Sugar) Subscribers: Rejected the 200 DMA today
JO (Coffee) Subscribers: Inside day and watching for now
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) 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:
PANW Still watching and still waiting for a move over R1 or around today’s highs with risk around Friday’s lows for a miniswing
NFLX Big eyes here when the giants give us a tight inside day risk. 434.98 risk and R1 442.41
GMCR 2 inside days and on the 10 DMA-good one to look at over today’s high for day to miniswing
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)
TXN Inside day with 47.60 mini to hybrid swing risk and over 48.23 clearing R1
GOOG Did as a daytrade. Now, looking at it for a ORR
BIDU 179.50 has to clear like it means it now then can do in any timeframe
GT Against 27.41 still has potential
HD Inside day with risk around 79.75 and over 80.85 clears 3 days of work
CSC Inside day and over 64.25 onto new highs projected gain 6.00 or more
FB Improved in condition like if holds 64.60
YUM I would keep eyes here-still looks great against 79.65
Category 4: (Rip Tide) N/A
Phase Change:
YOKU ½ position and now over the 50 DMA. If confirms over 22.00 consider adding to that total shares with new stop under todays low
GOGO Obviously prefer an ORR against 18.70 but if clears the 200 DMA 20.44 still good for a day to mini
AMZN Inside day with risk against Fridays low 320.42 and over R1 329.36 good for another stab
BZH 20.15 is the 200 DMA and now, closer
Shorts:
Category 5: Titanic-N/A
Category 6: White Cap-N/A
Bye For Now!
