Low volume rally and right to the fast moving average in S&P 500, NASDAQ 100, and the Dow Jones Industrial Average or the "spring rate" from my shock absorber analogy Tuesday. Only Russell 2000 (the one that hung onto the 200 DMA for dear life), crossed the fast moving average as best performer.
S&P 500 (SPY)133.56 Resistance 132.60 should act as support if market is to hold up here Subs: Positive Pivots
Russell 2000 (IWM)77.00 area now the fast moving average. If holds from here, could get interesting as 78 is a big point to clear Subs: Pivots Positive
Dow (DIA) 128.45 resistance and Wednesday low good if holds Subs: Pivots Positive
NASDAQ 100 (QQQ) 63.11 fast moving average to penetrate and like to see today's low hold. Subs: Pivots Positive
ETFs:
GLD Pretty dull
XLF (Financials) Back over the weekly moving averages and very healthy if stays here Subs: Long at 13.97, added at 14.15
IBB (Biotechnology) New highs, again
XRT (Retail) Way underperformed. Have been negative in this sector. Unless clears 57.80, first place to go if market rolls over
IYT (Transportation) 89.50 to hold now that is began to clear away from the 200 DMA Subs:Long for swing
IYR (Real Estate)Acting well, but really needs to clear the 50 DMA
USO (US Oil Fund) Overall negative and now that it had a bit of a rally, will look for a new short opportunity
XLE (Energy) Rallied to resistance, but looks better than oil
TBT (Ultrashort Lehman 20+ Year Treasuries) TLT hammer candle followed by a DOJI and resting on the fast moving average
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: Even with the chop, all one needs is to catch a move like in X (up 6%) COG (up 9%), both on list this week with tweeted entries, and the small stuff is insignificant.
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:
MJN Narrow range, 3 days under pivots. Must first clear 86.75, then R1. Risk today's low
Category 2:(Pipeline) Positive Phase, Condition 2-3, 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:
ROSG 3 days under the FTP inside day. Has to clear 11.85, then 12.53 and hold today's low
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:
DISCA 52.94 max risk
IMAX has to hold 23.12 max risk
TLT sitting on the 10 DMA with an inside day.
V Has to hold today's low
AMZN If today's low holds, still looks good
VRTX Like to see 60.00 hold
EQIX Back to condition 1. Ideally like to see 170.40 hold
AOL Has to hold today's low
TRIP Has to hold today's low
PPG Now, condition 2. Has to hold today's low and ideally now clear the 10 DMA 103.72
Category 4: (Rip Tide) Oversold (2 or more days under FTP), Condition 1-4, Needs to clear R1, Risk previous day low unless noted differently, Target- Day to at least 3 ATRs from entry:
Phase Change, Positive Pivots: AAPLHas to hold today's low and ideally cross 578.20 the 10 DMAXOM max risk today's low COF Over the 10 DMA 53.50 most powerful but positive LO Has to hold today's lowWPI Max risk today's low NXPI 20.84 good risk now SPG inside and narrow range day like to see 149.80 holdX like it to hold 19.15
Shorts: Had to underperform the market, but not be oversold. Note: ROSTslingshot worked out, now SHW underperforming and one to watch
Category 5:Titanic-Bear Phase, Negative pivots, not oversold, Risk R1 or previous day high. Target: Day to swing
MCD Swing traders still in. Otherwise, cannot cross 89.19
NEM Cannot cross 48.49
RHT Cannot cross 55.01
REGN Cannot cross 115.93
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
CELG 4 days up and right into resistance at the 10 DMA at 64.18 which it cannot clear. Should also fail S1
OXY Cannot clear 81.64 the 10 DMA and should break S1
CHKP Cannot clear today's high and should break today's low
Goodnight!