The Story of The Navajo Code Talkers of WWII Margaret T. Bixler
The Russell 2000s and consolidation go together like gin and tonic, which by the way, if you were so inclined, the slow Monday market gave liquid lunchers lots of time to imbibe. Now day 7 of a trading range between 117.37 high and 115.28 low, the patient should be rewarded once that range breaks up or down.
As for the rest, all of the other 3 indices finished on new highs making thesmall caps even more important, since it seems big brothers will not blast off further until the wee one goes from a crawl to at least a walk.
The initial stereotypical market perceptions of
the Republican win last week and the impact it had on certain sectors andgroups waned a
Likely that Tuesday, Veteran’s Day, will be slow as well considering the Federal holiday with banks closed. Lots of retailers report earnings this week, right when holiday shopping starts gearing up-I have already received several Veteran’s Day sale flyers in the mail with red and green the dominant border color.bit-Biotechnology and Healthcarehad a good day, Oil and Gas not so much. Then there is Solar Energy-although Solar City (SCTY)firmed, the ETF TAN remains under pressure and needs, well, some wind behind it.
I’d like to conclude with a loving shout out toTeddy Draper Sr. He is 93 years young and a living legend. Raised in the traditional Navajo lifestyle, at 17 he went off to fight in the Pacific Theater during WWII, trained as a Code Talker. Teddy went to Hiroshima and Nagasaki to radio back what had happened at Ground Zero. He was wounded in Iwa Jima, but rather than return to the states, fought on for another 26 days. The NavajoCode Talkers could not speak of their service for 50 years, not even to their families. We have had the honor of meeting him in Chinle, Arizona and now calling his son, Teddy Jr, a Veteran of the Vietnam War, our friend.
S&P 500 (SPY) New high close-I like the strong and silent type! Under 202.80 now will be a bit troublesome Subscribers: Positive Pivots in all
Russell 2000 (IWM) Over 117.80 brings it to the Promised Land and has to hold 115.20
Dow (DIA) Overbought but no topping patterns yet
Nasdaq (QQQ) Needs to clear 102.03 on a closing basis and hold 100.60
XLF (Financials) New highs-not surprising
KRE (Regional Banks) Quiet but good day-40.43 pivotal
SMH (Semiconductors) Semis are not needed at this party, but, still like to see them clear 52.00
IYT (Transportation) Truckin onto new highs
IBB (Biotechnology) Good day if holds 293 level now
XRT (Retail) Inside day-also not surprising
IYR (Real Estate) Came back well with 75.00 big support
ITB (US Home Construction) If this gap up holds, can see a lot more to the upside
GLD (Gold Trust) Back to its old tricks of no follow through and looking vulnerable
USO (US Oil Fund) Like GLD, not pretty
OIH (Oil Services) Stopped shy of 46.00 and reversed. Now, has to hold 44.25
XOP (Oil and Gas Exploration) 59.25 important support
FCG (First Trust ISE Reserve NatGas) 14.78 important support
TAN (Guggenheim Solar Energy) Not oversold yet, and may not get there-but certainly not ready for a long either
TBT (Ultrashort Lehman 20+ Year Treasuries) TLTs 120 pivotal area and the 50 DMA to hold 117.75
UUP (Dollar Bull) Good comeback
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:
TSO 70.30 max risk. Like over 71.80 the pivots then R1 72.45 R1 for a swing
Category 2:N/A
Category 3: (Double Up) Positive Phase, Condition 1 through 4, Positive Pivots which means can either buy an 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)
AFSI 49.88 max risk with positive pivots now so like better over 51.56
RAX reported. 37.64 is R1 and 35.50 is the 50 DMA-will watch how it does looking for upside if sets up well
TASR 17.80 is the key support with a move over 19.45 taking it to a new high with target 20.83 the 2014 high
PAY If this clears 37.84 should have a good move to higher with risk 36.78 the 10 DMA
ABBV-big day on light volume-now, an ORR would work best
LNKD If clears 232.30 like for a mini with risk to 226-227 target around 255
Category 4: (Rip Tide) Oversold (2 or more days under FTP), Condition 4, Needs to clear R1, Risk previous day low unless noted differently, Target- Day to at least 3 ATRs from entry:
XPO Oversold on the 2 day RSI. Max risk 37.00. Like better over 38.98 R1.
Phase Change:
BKD Converging moving averages which clears over 33.40 with risk to today’s lows-swing
SFM Like this now over 31.96 the 200 DMA with risk to whatever the low is if it clears it
MRVL Reports November 20th. Over the 50 DMA. If holds 13.27 could see move to 14.50 ahead of earnings in a good market
TEX Keep an eye on this over 30.00
DDD Reported. 36.88 the 10 DMA to clear for a swing with risk to 33.80 if position size for 2 ATRs of risk
AMZN should be long-now like an ORR against 299 or a breakout over 308
Shorts:
Category 5: Titanic-Bear Phase, Negative pivots, not oversold, Risk R1 or previous day high. Target: Day to swing
PSX Consolidating under the 10 DMA at 76.30. Has to break 74.50
FB Under today’s low breaks a trendline going back to mid-October. Risk 76.00 for a move to 70.00or lower-swing
Category 6: N/A
Best Best wishes for your trading,
Michele Schneider
