Watch for an Email Alert To Enter Any New Position
Open Trade Update
Existing Position: SMH Long 35.02 (½-2/3 position remaining)
Current Price: 37.96
Stop: 35.47
Target: 40.00
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Existing Position: XLF Long 18.38
Current Price: 19.16
Stop: 18.38
Target: 19.38 (That is 5 ATRs so make sure you lock in and can keep ¼ to ½ position to ride it out with trailing stops posted)
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Existing Position SGG Long 62.90
Current Price: 62.94
Stop: 61.38
First Target: 65.90
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Market Analysis for Trading on 5/8/13
Almost a repeat of Monday only better, the small caps (IWM) continued climbing along with the transportation and financial sectors, while the long bonds continued going south. Traders tend to underestimate the power of Runaway gaps so it is my hope that the definition over the weekend helped to elucidate the move of the last two days. The retail group made new highs along with the homebuilders sector and biotechnology followed through to the downside after the exhaustion gap we saw and also reported about over the weekend. The Oscillators are extended nearing overbought conditions in the S&P 500, but they are yet to show signs of a reversal from the now startling Industrial Average over 15,000! As we continue to reach profit targets, smart money is locking in on this historical move while holding tails and trailing up stops on balances.
S&P 500 (SPY) 161.00 good point to hold with 164 target Subscribers: Pivots positive in all indexes except QQQ
Russell 2000 (IWM) 97-98.00 reasonable target it holds 95.00
Dow (DIA) Certainly eradicated the concerns from Monday’s pause with a beautiful performance today.
NASDAQ 100 (QQQ) Heeding Monday’s warning of not buying at the highs, nor having concern if already long from lower levels, NASDAQ took the needed rest. Subscribers: 71.91 gap low from Friday
ETFs:
GLD Gap lower under the fast moving average, but closed holding the larger gap from 4/25 and held 140.00 a pivotal area with a doji (opening and closing prices nearly identical) day.
XLF (Financials) Approaching some longer term resistance Subscribers: Got pretty close to target of 5 ATRs at 19.38
IBB (Biotechnology) Head’s up on the exhaustion gap left last Friday. Now, getting close to support at 173.40
SMH (Semiconductors) Relative to the other groups, took a rest as it retreats marginally from a channel that goes back 12 years. Subscribers: Any dip to 37.00 is probably a good place for this to reignite from
XRT (Retail) Subscribers: Study the inside day, positive pivots and Opening range reversal setup on this chart.
IYT (Transportation) Hope you rode the transportation train-a group I have loved for quite some time! Subscribers: 116 target
IYR (Real Estate) Good follow through after Monday’s inside day rest
USO (US Oil Fund) Interesting inside day after confirming an improved phase change
OIH (Oil Services) 45.12 is the 2013 high Subscribers: Say hello to the 80 monthly moving average if it stays firm
XLE (Energy) New 2013 high
TBT (Ultrashort Lehman 20+ Year Treasuries) Filled a gap to 62.20 with today’s high 62.24
XOP (Oil and Gas Exploration) 60.00 some resistance Subscribers: Long ½ position
UUP (Dollar Bull) Watching that 200 weekly moving average like a hawk
UNG (United States Natural Gas Fund) Subscribers: Unconfirmed phase change to weak warning so if clears the 50 DMA now, a good risk trade
SGG (Sugar ETF) Subscribers: After a rest, watching to see if it can clear the 50 DMA
Bye for Now!
