Where were the rodeo cowboys today? Twitter, Youku Tudou (in our portfolio), First Solar, Wynn Resortsto name the top few.
But what about the rest of the market? Our go to’s? The Russell 2000s closed right on the pivotal 117.50 area. NASDAQ well above the 92.80 pivotal area and very close to the highs.
S&P 500 cleared 195 and the Dow squeaked over 168. Add that all up and we have a solid market very close to the highs. Anything can change given tenuous geopolitical situations. But short of that, assume as we end this week and go to a shortened holiday week, the volume will dry up further and the price will drift around without any significant game changing.
One final note as I head on vacation: Favorite sectors looking forward: Solar, Regional Banks and China. July 1st’s is the new 6 month calendar range which could be the key to a great next 6 months (we are up nearly 10% so far).
S&P 500 (SPY) Back over 195. Subscribers: Negative Pivots in DIA SPY Positive in IWM QQQ
Russell 2000 (IWM) 117.50 pivotal with over 118 better
Dow (DIA) 168 pivotal and like better over 168.50
Nasdaq (QQQ) How can you argue with this unless it breaks 92.00
XLF (Financials) Trying, we will give it that
KRE (Regional Banks) Really like this short and long term
SMH (Semiconductors) Holding that runaway gap which is great
IYT (Transportation) Good
IBB (Biotechnology) Over 257.60 very nice
XRT (Retail) Actually, since this never cleared the 2014 highs, could just need to do more work between 84.00 and 87.00
IYR (Real Estate) Range is getting narrower on this correction which probably signifies correction coming to an end
ITB (US Home Construction) Establishing a base over the major moving averages
GLD In a holding pattern
Metals and Mining (XME) Wrote about this in early June when it changed phases, now looks like it want to continue basing
USO (US Oil Fund) Since the runaway gap, been consolidating.
OIH (Oil Services) New high close
FCG (First Trust ISE Reserve NatGas) Looks a bit heavy actually
TAN (Guggenheim Solar Energy) Love this longer term
TBT (Ultrashort Lehman 20+ Year Treasuries) TLT Filled a gap on the daily chart-now if it starts to roll over, would be interested in looking at a short
FXI (China Large Cap Fund) Gapped higher off the 200 DMA
SGG (Sugar) Subscribers: Once more push gets this over the 200 DMA and this time, have to follow-premium folks if do, we will take a small position and a super wide stop
JO (Coffee) Subscribers: Held 35.00
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:
PNC Nice looking chart with an inside day and over the 10 DMA. Like it if holds 87.81 and clears R1 89.06
AMP Inside day over the 10 DMA the risk and if clears 119.73 could continue up for another leg
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)
PANW If I were sticking around would have bought this-now, still good if today’s low holds
BIIB Good biotech that if clears 322 looks great but against the 10 DMA could be a low risk ORR if sets up
NFLX Really, has to clear 450.82 negative pivots but also an inside day above the 10 DMA
BIDU Have to leave this here but I thought todays action disappointing.
OI I really like this chart longer term. Now, 34.06 the 10 DMA good risk and over 34.70 clears R1
RHT 54 max risk and could be setting up for a move to the recent highs and beyond
TSLA 241.88 has to clear now for the day to miniswing
TXN Like the inside day so over 48.11 looks better with risk to today’s lows
HD Almost there but didn’t clear the fudge factor with time-big eyes tomorrow over today’s highs for swing
LNG about to take out the highs-good for all time frames over 69.60
CLH Good move on a thin stock. If holds today’s low could be some follow through especially over recent highs 63.54
Category 4: (Rip Tide) N/A
Phase Change:
YELP Over Tuesday high 79.30 another one good for a day to miniswing
STT Over the 200 DMA or 68.29 gets interesting
JPM Like over R1 57.72 and the stop now for a hybrid swing
KSU If today’s low holds, like for a miniswing over today’s highs and if good, we keep a tail over the 200 DMA
Shorts:
Category 5: Titanic-Bear Phase, Negative pivots, not oversold, Risk R1 or previous day high. Target: Day to swing
ESRX If cannot clear 69.65 the 200 DMA then could be ready to see 66 or lower
Category 6: White Cap-N/A
Bye For Now!
