Technicals are mixed making this a really tough environment. Slope on the 50 DMA in SPY has declined although price is above along with a positive phase and volume patterns good (another accumulation day today.) Big note: If SPY closes above the 80 monthly moving average by end of the week, will be the first time since July.
IWM slope on the 50 DMA is intact with its 4th accumulation day in volume. QQQ is in the strongest phase with positive slopes on the longer term moving averages up although with the recent poor earnings inAMZN and AAPL, 2 distribution days in volume in a row. Getting a headache? Looking at sectors/groups:
Subs-pivots positive in all indexes except QQQ, which using our rules consistently has to break R1 57.97 to resume uptrend
ETFs:
GLD Back to low volume but could be a digestion as it is approaching overbought. Overhead at the 50 DMA 169.25 with gap, should it get really going, at 172.20.
XLK (Technology) Held the 200 DMA and not overbought. Subs-2 days under the FTP in its Accum phase. 25.50 needs to hold and then clear R1 25.89)
SMH* (Semiconductors) Still could not clear the 200 daily moving average. Prefer to look at XLK right now.
XRT (Retail) Subs: 52.23 negative pivots to hold. Over 53.30 R1 good for this group
IBB (Biotechnology) Has not closed above the 200 DMA since early August. Needs to get in gear for sustained rally
XLF (Financials) Held 13.00 again. 13.48 next hurdle. Lots of noise in the middle
OIH (Oil Service Holders) Still under the 70 EMA but gathering steam.
XLE (Energy) Subs: Playing with stocks in this group since overbought and saw RIG which is 9 days above the FTP -Daytraders only can have a party with this if market sells off.
Longs: Swing traders had some choices today on the condition 1 picks to get long ½ since could not clear R1 (ABT COST) except in MRX which did. But, it takes conviction and ability to sit to under the 200 DMAs for swing.
YUM Held moving averages which all converge at around 52.00. 3 days under the FTP at 52.94 with R1 at 53.96. Over 54.00, next resistance at all time high 57.75 and if that breaks, could see a 7.00 move. Swing trade risk under 51.89. Day to swing
GOOG When first appeared on list, mentioned risk under 572. It had not cleared the high after earnings so tweeted caution. Now, back to 2 days under the FTP at 583.04 and S1 575.93. Plus holding the 10 DMA at 584.43. This does have to clear R1 593.21 but will watch for support to control risk. If crosses 600 see another 25-50.00. Day to mini
WFM Condition 1 with 2 days under the FTP at 70.59 with risk to under today's low 69.25. Backed off from the Bollinger band on the weekly first time up, but it does have a positive slope on it. All time high made in 2005 79.90. Whenever I go into Whole Foods I wonder to myself, "Where is the recession?" I stand 20 minutes on the express line (10 items or less). R1 at 71.94. Day to mini
BBBY Condition 1 with 2 days under FTP at 80.86 with risk to under today's low and could use the pivots which corresponds with the 10 MA at 60.81. Also has to clear R1 61.85 but as with all condition 1's, can buy half over pivots when corresponds with an opening range breakout. Made new all time highs earlier this week and could be good for another 10.00. Day to swing
GPC New Condition 1 (50 crossed the 200 ) and 2 days under the FTP at 57.00 with risk the 10 DMA at 56.11. R1 at 57.52 with new all time high made Monday at 58.78, which if clears could see another 10.00 move. Day to Swing
Honorable Mention: In good condition and must clear R1 ABT* Inside day (53.90) COST ((84.54)ANN (27.32) JWN (51.56) PETM (47.10) LTD (43.73) OR reversals positive pivots- MRX RHTADP FAST. 8 days down in a row and oversold JVA (must clear R1 10.71-the 200 DMA 10.58)
NOTE: BIDU reports and right on the converging moving averages, a concept I talk a lot about. Worth watching.
Shorts: Scanned for ones in a bear phase with negative pivots, not close to oversold:
VECO negative pivots at 25.23. Should not cross R1 26.45. Recent low 23.06 and if that breaks could see 18.00. Day to mini
MMM Negative pivots at 77.12 and should not clear R1 and today's high 78.40. Some support at 72.00 but could see lower prices to 69.00 recent low. Day to mini
LXK Negative pivots at 29.29. R1 29.85. Recent low 25.87 Day to mini
Hon Mention: PEP not very exciting, but still has downside potential if patient. OR high failure under R1 X CRM
Goodnight!
