Existing Position: Long UUP $22.12
Current Price: 21.87
Stop: 21.79 stop
First Target: 23.00 take ½-1/3
Reason For trade: Has bounced off major support levels and underlying index has crossed over 200 DMA
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Existing Position: Long EWG 24.70 (1/4 position)
Current Price: 26.70
Stop: 25.77
Next target: With ¼ of the position left, will use a trailing stop
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Existing Position: Long TXN 39.18
Current Price: 38.75
Stop: 37.09
First Target: 42.91 Take 1/4 - 1/3
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Existing Position: Long SGG 58.65
Current Price: 57.42
Stop: 56.79
First Target: 61.60 Take 1/4 -1/3
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Market Analysis For Trading on 8/21/2013
The market opened this morning with nearly all of us watching the indexes. I was asking myself, “Can SPY and IWM clear the 50 DMA? Or will they fail, leaving only Nasdaq in a bullish phase?” It seemed like an important test. The Russell 2000 and the S&P 500 cleared the 50 Day Moving Average, and spent most of the day trading above it. However we are not out of the woods yet, as SPY was unable to close above the 50 DMA (confirming its warning phase). The S&P 500 and Nasdaq closed with inside days. Watch how the inside day ranges break in SPY and QQQ as an indicator of the next short term move. As I have been during the correction that we’ve seen the past few days, I will be focusing on stocks with good volume and are holding key levels of support. The FED minutes are released tomorrow. Don’t expect any big news regarding policy changes but, this can mean volatility.
S&P 500 (SPY) Inside day. Confirmed the warning phase. Subscribers: Pivots positive.
Russell 2000 (IWM) Back into an unconfirmed warning phase. Subscribers: Pivots positive.
Dow (DIA) Closed on moderate support. 149.20 is the gap low from 5/3. Watch for that level to hold. Subscribers: Pivots negative.
Nasdaq (QQQ) Inside day. This is the best performing index. Watch how the range breaks.Subscribers: Pivots positive.
ETFs:
XLF (Financials) Closed above the gap from 7/5. Holding the 80 monthly moving average.
SMH (Semiconductors) Inside day.
XRT (Retail) Closed above the 50 DMA. Now in an unconfirmed Bullish Phase.
IYT (Transportation) Closed over the 50 DMA. Now in an unconfirmed bullish phase.
IBB (Biotechnology) Holding the upward sloping 50 DMA and the gap from 7/11.
XHB (Homebuilders) Cleared the 200 DMA and is now in an unconfirmed warning phase.
GLD Digesting the higher levels from the move up on 8/15.
USO (US Oil Fund) Broke down out of the range from the inside day. Closed under the 10 DMA.
OIH (Oil Services) Holding the 50 DMA.
XLE (Energy) Confirmed the warning phase.
XOP (Oil and Gas Exploration) Closed above the 50 DMA, bringing this into an unconfirmed bullish phase.
TBT (Ultrashort Lehman 20+ Year Treasuries) Corrected slightly and is holding Friday’s closing price.
UUP (Dollar Bull) Tested and held the June lows.
EWW (Mexico) Subscribers: Now in an unconfirmed Recovery Phase.
SGG (Sugar) Subscribers: Inside day and confirmed the Bear phase.
Bye for Now!
