To The Tune of Up, Up and Away by Jimmy L. Webb
Gap, Gap and Away,
With An Awesome Volume Surge
SPY A Nicer Place
In A Beautiful Balloon
For It Can Fly..Fllllllyyyyyy
Gap, Gap and Away!
S&P 500 (SPY) New high everything with an accumulation day in volume-are we concerned about a blow off rally mentioned 2 weeks ago? Darn right we are. Subscribers: Pivots pivots in all
Russell 2000 (IWM) The blow off rally potential is more evident here after new highs and double the average daily volume. Watch for it.
Dow (DIA) Then there is the Dow, still has miles to catch up or not
Nasdaq (QQQ) New high close but not new highs
XLF (Financials) The theory of buy the weaker sister when the market reverses was evident here today. Back to an unconfirmed bullish phase
SMH (Semiconductors) New highs
IYT (Transportation) Still has a gap to fill to 134.58
IBB (Biotechnology) Did better but no wow factor
XRT (Retail) Opportunity knocked here as well. Now, 2014 high is 88.26
IYR (Real Estate) Knew this wasn’t done yet
XHB (Homebuilders) Impressive if 34.27 clears
GLD Gapped lower leaving a potential island top
USO (US Oil Fund) Like GLD, a potential island top
OIH (Oil Services) Has to clear 49.00
XLE (Energy) Has to clear 88.48 once and for all
XOP (Oil and Gas Exploration) Moved off the hammer candle close well and now has to clear 71.27
TBT (Ultrashort Lehman 20+ Year Treasuries) Rule # something or other-never short an oversold instrument.
UUP (Dollar Bull) Confirmed brick wal bottom
EEM (Emerging Markets) Subscribers: Now gapped up but not over the 50 DMA
FXI (China Large Cap Fund) Seems that emerging markets not as convinced about the US rally
CORN (Corn) Subscribers: Took a profit on our add. Now, let it ride some more
BAL (Cotton) Subscribers: Followed through on the breakout over 54.75
JO (Coffee) Subscribers: We look pretty good taking some off at 39.49
SGG (Sugar) Subscribers: Flag forming near the 200 DMA
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)
CNQ Inside day.36.30 is good tight risk with a move over 37.20 good-still in play
FB Over today’s high clears the 10 DMA. Then the risk will be 69.00 if clears.
AA Like if holds today’s low and takes out todays high
FSLR If holds today’s low, looks poised to take out 58.85 and keep going
WLP If holds 90.00 could see more upside especially if clears 92.00
NBL Inside day and has to hold today’s low and clear 69.70
Category 4: (Rip Tide) N/A
Phase Change:
XOM Back on list since remaining above 50 DMA-new trade is a hold of 96.27 clearing 97.00
CYH 42.68 is the 200 DMA to clear with risk then at the low of the day if clears it
ROST 72.14 the place to hold now with a chart still of interest
AXL 19.86 now support to hold with gap to 20.37 to fill
JCP ORR entry today with swing risk. If really good should hold today’s gap and stay above 8.00
SODA has to clear 40.01 and should be good to go
Shorts:
Category 5: Titanic-Bear Phase, Negative pivots, not oversold, Risk R1 or previous day high. Target: Day to swing
CELG Has to break S1.
Category 6: White Cap-Having a 2-3 Day correction over the pivots.. In a Negative Phase, Positive Pivots. Can sell an Opening Range High Failure if happens below R1 or previous day high whatever is higher and/or weakness if breaks S1 and prior day’s lows
BBBY Max risk 69.27 and has to break S1
Bye For Now!
