New Position: Long OIH $45.47
Current Price: 45.43
Stop: 44.27 stop
First Target: 46.75 take ½-1/3
Reason For trade: Has bounced off its 50-DMA and major support at 44.40 in a bullish phase.
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Existing Position: Long UUP $22.12
Current Price: 21.98
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: 27.03
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: 39.07
Stop: 37.09
First Target: 42.91 Take 1/4 - 1/3
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Market Analysis For Trading on 8/26/2013
After Thursday’s strange day, today was a great way to finish off the week. The Nasdaq (QQQ)gapped higher this morning and spent the day consolidating at higher levels. The S&P 500 (SPY)confirmed its bull phase. The Russell 2000 (IWM) looks poised to climb higher after holding the10 DMA and closing above the high from the day that it gapped down (8/15). The Dow Jones Industrial Average (DIA) broke out of its inside day and is beginning to climb back to support. It is beginning to look like the market wants higher prices and this correction may be coming to an end. Although, it is worth noting that volume was not impressive in the indexes (except in DIA, which had an accumulation day). The next test for the indexes is if IWM and SPY can close the gap from 8/15. TBT dropped sharply today and closed beneath the 10 DMA.
S&P 500 (SPY) Confirmed the bullish phase and closed just under the 10 DMA but above the gap from 7/11. Subscribers: Pivots positive.
Russell 2000 (IWM) Closed above the 10 DMA. Watch for 103.33 to clear. Subscribers: Pivots positive.
Dow (DIA) Broke out of its inside day and climbing. Subscribers: Pivots positive.
Nasdaq (QQQ) Gapped up and consolidated. Watch for Friday’s low to hold. Subscribers: Pivots positive.
ETFs:
XLF (Financials) Pushing against the 50 DMA and looks poised to break it. Still in a warning phase.
SMH (Semiconductors) Sideways consolidating action. Doji day. The 10 DMA needs to clear.
XRT (Retail) Broke down from its inside day and closed on support.
IYT (Transportation) Confirmed the bull phase. Digesting the big move from Thursday.
IYR (Real Estate) Broke out of its inside day and closed above the 10 DMA.
XHB (Homebuilders) Closed under the 10 DMA but is holding the 200 DMA.
GLD Great move and had an accumulation day in volume.
USO (US Oil Fund) Closed above the 10 DMA.
OIH (Oil Services) Confirmed the bull phase with an accumulation day. Watch for 45.50 to hold.
XLE (Energy) Closed above the 10 DMA and is now in an unconfirmed bullish phase.
XOP (Oil and Gas Exploration) Closed above the 10 DMA and confirmed the bullish phase.
TBT (Ultrashort Lehman 20+ Year Treasuries) Broke down out of its inside day and closed under the 10 DMA. Look to 79.00 as support.
EWG (Germany) Subscribers: Made new yearly highs today.
Bye for Now!
