SPY not only did what it needed to do, surpassed what it needed to do. Once it opened up above 131.45, it was a "follow it up" with barely a moment of pain. Now, has some resistance at 133.25, initial support at 132.30 and then at today's low 131.31 which seems unlikely to see at least in the next couple of days. Still working off the island top which appears only on the daily not the weekly chart. Next overhead resistance at 137.25. Eminis have to get back above 1328 level.
QQQ today's low was just above the 10 day moving average. Now, we should see 60 as some initial resistance, but the overall chart formation suggests the possibility of a move to 65. 58.60 intraday support, better at today's low.
IWM 83.48 is the 10 day moving average, the next point that needs to cross. After that, could very well take another shot up at the all time high 86.82.
I've been writing that the long-term trend has not been violated since the bullish run began last summer. Of course the volatile swings have kept most traders in and out of their positions as I cannot imagine the level of tenacity it requires to be a buy and hold investor. Plus, there has been a plethora of incredible opportunities to catch momentum, take profits and look again with fresh eyes. Now, it is entirely possible that we will see another big swing to the upside. Volume was light all around, but I take that more as an indication that many investors are still aside unbelieving then as a sign of a weak rally.
Featured ETFS:
SLV and GLD as noted yesterday, used a trailing stop and exited GLD at 156 from the long position established at 148.50. SLV exited the long position from 37.85 at 39. Both still have long-term bullish trends, but will now wait to see if GLD can retrace back down to 152.50.
EWC*broke above 32.00 on a closing basis, the trendline on the daily chart. Should hold above the trendline with the next resistance at 33.20.
XRT Now expect a move to 56 with support at 54.32
IBB did not perform as well as some of the other sectors stopping right by 10 day moving average at 108.02. Provided it continues to hold 106.50, now if it gets above the 10 day moving average, next time it gets to 110, will continue onto new highs with a projected move of 115.
SMH held the 50 weekly moving average and ran right up to 200 daily moving average now at 33.35. Since this hasn't violated its long-term bullish trend, provided it now holds above 32.60, if it clears the 200 day moving average can rally up to 34.
OIH overall target 166. Would continue to be a buyer of dips.
XLE now see a possible move up to 81.
XLF reversed the recent downtrend by closing above R1. Now, provided it continues to hold 14.60, could see a rally up to 15.25. The 50 weekly moving average is at 15.50.
Longs: Expect to see higher openings based on earnings. I suggest you review the article on post-earnings trading and watch any archived videos about following or fading the two minute opening range on gaps higher. Also look for breakaway gaps like in AMZN-same rule applies. Lots of long setups over last couple of days-many good picks. Now, will wait for new short-term trading patterns on reentry into the Nuggets. Please do not hesitate to let me know what and how you are doing.
BBBY*Did not get much follow through on the opening range reversal. Now, with a positive FTP, back above 59.65 considering this held and closed above the 10 day moving average now at 59.37, could get another opportunity to buy with a limited risk. Overall target 62.50. Day to swing
NFLX*could not clear the 10 day moving average at 290. But, still looks strong with good support at today's low 284. The FTP is at 286.77 now a good pivotal area. Depending on how it opens, if it takes out today's high and R1 at 289.60, can use the FTP as a tight risk in anticipation of this getting through the 10 day moving average and continuing onto the high from July 13 304.79. Reports July 25. Day to mini
CTRP*reports August 1. Lots of convergence by all of the moving averages but not stacked nor sloped. Looking at price range as congestion, provided it holds 43, once this clears above today's high of 44.50, we could see a move to 46.20. And above that, will look like an inverted head and shoulders with the possibility of a move to 50 before earnings. Day to mini
JOYG has two tops now at 99.30. With positive pivots, if it gets through those highs, can use a tight risk to the FTP at 98.41 for a mini swing. Swing traders can use to under the 10 day moving average 96.39. Projected move to 104. This is one I would buy on new highs only. Reports August 31. Day to swing
NTES**reports August 15. Had an inside day with an opening range reversal which I did not take because the pivots were negative. But now, the FTP is positive coming in at 48.71. Underlying support at the 10 day moving average 47.74. Above today's high and R1 at 49.11, overhead resistance at 50 from last week, but above that, projected move to 53.50. All time high made in April at 55. Day to swing.
Shorts:
NVLS*not surprising this would rally today, but could not get above 32.48. Nor could it get back above the 50 weekly moving average 32.65. Would now want to wait for weakness since the pivots are positive. Under 31.85 or S1 is the area to look for. Support at 30.48. Day to mini
RKT*reports August 5. Had an inside day with negative pivots coming in at 60.59. Broke the 50 weekly at 61.05. Today's high 61.23. If it cannot get above today's high and the 50 weekly moving average, would look for a short entry with a confirmation under the FTP. Day to swing.
Goodnight!