Existing Position: Long EWG 24.70 (1/4 position)
Current Price: 26.71
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: 39.83
Stop: 37.09
First Target: 50.00
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Existing Position: GLD Long 119.35 (1/4 position)
Stop: 124.94
Current Price: 126.62
Next Target: With ¼ of the position left, will use a trailing stop
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Market Analysis for Trading on 8/2/2013
Interest rates and the US dollar rose while the market went out on new highs. We can debate and speculate all day long on the Fed policy and how much the market cares or does not care about it. Better yet, how much the market believes or doesn’t believe the dovish sentiments. What we can sink our teeth into is how the market has been behaving ever since the idea of tapering began. A walk through recent history begins May 22nd on the suggestion of higher rates which began a flood of selling. But after a 5 month incline, it is now apparent that that was more of a good correction. Then, the market recovers and makes yet another new high 2 weeks ago. The next correction that we all waited for, never really materialized. Now, we are at new highs once again and it appears that rates are destined to go up; but since the market has such lofty sectors (techs, social media), so is the market. The ball and chain of higher rates is made of Styrofoam not lead.
S&P 500 (SPY) New highs and a close on the highs. What more is there to say? Subscribers:pivots positive in all indexes.
Russell 2000 (IWM) Cleared 104.98 and brought back confidence
Dow (DIA) Cute little doji (opening and closing prices virtually the same) candle at the highs
NASDAQ 100 (QQQ) The leader still leading
ETFs:
XLF (Financials) Cleared 20.67 with a gap higher and worked its way higher still. However, not yet on new highs
SMH (Semiconductors) Working its way towards the gap overhead to be filled-or at least that would be the healthiest scenario
XRT (Retail) Been leading along with biotechnology and one reason that while many held their breath, going short was not an option either
IYT (Transportation) Beautiful technical signal as it cleared 116 with a gap higher and kept going
IBB (Biotechnology) 200!
IYR (Real Estate) Still awful but at least an inside day.
XHB (Homebuilders) Unconfirmed bullish phase
GLD Inside day under the 50 DMA Subscribers: Might like this tomorrow-depends on the 50 DMA
USO (US Oil Fund) A good comeback alright. The implications of higher oil prices has its plusses and minuses
XLE (Energy) 84.00 is key
XOP (Oil and Gas Exploration) Amazing move in one of my favorite sectors this year
TBT (Ultrashort Lehman 20+ Year Treasuries) Hardly a confirmation of a reversal as it took out the highs!
UUP (Dollar Bull) Improved phase Subscribers: Another day over the 200 DMA and look for a low risk long entry
EWG (Germany) Do I hear new 2013 highs soon?
EWW (Mexico) Subscribers: Bought a small starter position provided it holds the moving average
Bye for Now!
