A DOJI day in SPY with light volume. Now, 133.78 where the open and close is becomes pivotal. It also had an inside day which means above 134.10 see no reason why the move should not resume to the upside with the next resistance at 134.92. However, considering the DOJI and inside day, if it breaks beneath today's low 133.39 we could also see the correction down to the 50 day moving average at 131.94.
QQQ did not quite make it to 58.36 the resistance from the beginning of June that I pointed out on today's video. It also had light volume. If it cannot get through 58.36, beneath today's low 57.83 and will look like a strong possibility of a retracement down to the 50 day moving average at 56.97.
IWM had an inside day also on light volume. Friday's hi was 84.23 now the next number to penetrate before going to its resistance from the beginning of June at 84.86. Or, beneath today's low 84.04 next support at 82.30 area with the adaptive moving average at 82.46.
All of the indexes are still in overbought territory on the short-term RSI indicator. However, they are all still in a bullish phase which means that dips are buy opportunities.
Featured ETFS:
SMH still a wild card although the weekly chart in an up trend. After stopping at the 50 day moving average on Friday, today it opened right near Friday's hi and proceeded to sell off. Interesting is that the low held the 70 exponential moving average at 34.31. Tomorrow the pivots are positive which means a move back above 34.53 and this time, it might get the momentum to get through the 50 day moving average. Next overhead resistance at 35.25. However, if it breaks today's low at 34.28, has some support at Friday's low 33.80, and better support at 33.50 the top of the congestion from last week.
SLV with a gap higher today, followed to the upside with an entry at 34.15 taking some profit at 34.57 and taking home the rest. At this point, today's activity could merely have been a retracement to a trendline breakdown from the lows that were made back in mid-May. Therefore, now want to see it break above today's high 34.78 with next resistance up at 35.40. Although it held recent lows, still has a sharply declining 50 day moving average overhead keeping this in a strong warning phase.
GLD unlike silver, this is in a weak warning phase as the 50 day moving average is still pointing up. Now, if it can get back above the 50 day moving average at 148.11, anticipate it going to fill the gap that was left back on June 22 up to 150.56.
FXE actually had a correction today by dropping down to the 50 day moving average at 143.49 with today's low 143.41 and bouncing back. Still has to clear 144.86 to fill a gap that was left up to 145.07.Now with two days under the FTP, a move back above 143.82 have a tight risk to today's low or can use the 10 day moving average at 143.21.
FXI went short on the breakdown but covered on the close after it popped back over S1. Now, with negative pivots tomorrow if it fails 42.99, and breaks beneath today's low 42.79 still set up for a short with underlying support down at the 200 weekly moving average 41.97.
XLF had an inside day today closing beneath the 50 day moving average and the right beneath the 50 weekly moving average. Now, unless it gets back above 15.51 area with negative pivots tomorrow, a break below today's low 15.42 and next support comes in at 15.20 the top of the consolidation for several weeks.
Although nobody can argue with the stronger sectors and groups that have led this market such asbiotechnology, retail and real estate, no party is complete without semiconductors and financials in the house. Note: XRT has to take out 54.72 for new highs.
Picks: New subscribers please note that if I **a pick it means that if the setup on the open matches the parameters that I write about, I will primarily focus on those stocks and ETF's. Similarly, Day to Swing means that if the stock or ETF sets up according to the parameters I write about, it is one that you can either daytrade , mini swing or hold onto for a swing trade which typically means a week to a month or longer. Those of you who are only able to watch the open, and prefer to swing trade can use the list by setting up on your trading platform the ones that are both **and recommended for swing trades. Also, I suggest you sign up to follow me on the private twitter as I am happy to answer questions on any particular stocks or ETF's you might be interested in swing trading but are unclear as to whether or not they are set up appropriately. Finally, do not be afraid trade more expensive stocks. As long as the risk is clear, the percentage of profit is much higher. Often times, people perceive cheaper stocks as safer trades. Usually, cheaper stocks are cheap because they do not have substantial upside potential. If you do not have the equity in your account to cover the margins on more expensive stocks, you might consider looking at options as I give targets and risk points as a way for you to price in and out of the money calls.
Longs: Incredible move today in CRM and great follow-through with the existing longs in AAPL, AMZN, WYNN. Also established long positions in PAY, POT and SLV. VMW and CF both had opening range reversals and closed very well. When the market is bullish, a good strategy is to buy opening range reversals especially if the risk to previous day low or some other significant reference point is within one third of an ATR from entry. None of tonight's selections are overbought on the 2-Day RSI.
ATI**had an inside day today. Now has three days under the floor trader pivot which is negatively stacked once again tomorrow. Above 62.68 it will stay above the floor trader pivot and if it can get through today's high at 63.42 that lines up perfectly with R1. Then, would be a buyer with some choices of risk. Swing traders can use under 61.48, mini swing traders under today's low 61.95 and daytraders the FTP. If it can clear 63.74, next overhead resistance is at the 10 day moving average 65.19. Day to swing
RSP* had an inside day and is trading above the 50 day moving average at 50.47. Has positive pivots tomorrow so can either look to buy against today's low 51.07 or if it clears today's high and R1 at 51.45. All-time high was made on May 2 at 52.33. Since this is not overbought has the potential to move up to 57 with a strong market. Mini to swing.
BWA*inside day with a narrow range. All-time high 82.28. Since the pivots are negative, would not risk more than last Friday's low 80.40 if it can get back above 80.70 and take out today's high at 81.38. Above all time highs looking for a move up to over 100. Day to swing.
UHS**inside day with positive pivots and bumping up against the trendline coming down from the all-time high made on May 10. On the list last Friday and triggered a long above 52.25. But if this is any good, should just be getting going. Now, can buy against today's low 52.61 if it takes out the FTP at 53.06. Plus if it can get above today's high and R1 at 53.51, still has a little bit of resistance at Friday's hi 53.75, but above that especially on a closing basis should go to new highs. All time highs for now put in place on May 10 at 56.46.Day to swing.
JOYG inside day with positive pivots. One I would look to buy on an opening range reversal against today's low 95.20 or if the market is very strong above the FTP at 96.30. 97.53 was Friday's hi, all time high was made in April at 103.33. The key to all these pics on the ones that have already made sizable moves, is to control the risk and try to buy it on weakness based on the opening range reversal strategy. Day to swing
MCP last time I recommended this stock was once it broke above the exponential moving average of 51.50 with a projected move to 60. It did exactly that making a high last Thursday of 61.99. Now, it sold off from the 50 day moving average with two days under the FTP. They are stacked negative tomorrow which means it must hold above 58.54 with a pretty good risk if you use the 70 day exponential moving average of 57.76. If this can clear today's high and R1 at 59.79, has to get above the 50 day moving average at 60.80, but if it does next overhead resistance at 66.40. Day to swing.
Other inside days for honorable mention: CAT, BDX
Shorts:
WHR*looking at this one again since last Friday it ran up to the 200 day moving average, tried it again today and closed below the FTP which is stacked negative tomorrow. Plus, it closed back below the 50 weekly moving average at 82.05. Had an inside day, so if it cannot get above today's high 82.75 and opens below the FTP at 81.88, might take another stab at the short side but has to break beneath today's low 81.13 and S1 81.10 to keep in a short position. Then, it is possible that we can see it move down first to the 10 day moving average at 79.25 and possibly back down to the 200 weekly moving average at 72.68. Day to swing.
GS a day trade short today because it held the 10 day moving average. Now, under today's low 133 also breaks the 10 day moving average and S1. At that point, a risk to the FTP at 134.54 for mini swing trade or above today's high for a swing. Day to swing
Goodnight!