New Position: Long OIH $45.47
Current Price: 45.50
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: 21.99
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: 26.96
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: 39.19
Stop: 37.09
First Target: 42.91 Take 1/4 - 1/3
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Market Analysis For Trading on 8/27/2013
Today seemed unremarkable, but was actually a rather healthy and necessary digestion day in themajor indexes. Nasdaq (QQQ) actually made a multi-year high today, but closed near the opening price. The most volatile moment came shortly after US Secretary of State John Kerry’s statements on the conflict in Syria, when all four major indexes suddenly began to slide. I don’t think this is cause for too much alarm, as all indexes managed to hold support and closed relatively well. All indexes are on key support levels, however resistance is also overhead. Biotech (IBB)had an impressive day today. It is the last week of August, and volume will likely remain low. Look for stocks with good volume and good support.
S&P 500 (SPY) Now in an unconfirmed warning phase. Watch for 163.64 to hold and the 50 DMA to clear Subscribers: Pivots slightly negative
Russell 2000 (IWM) Watch for 103.00 to hold. Subscribers: Pivots positive.
Dow (DIA) Approaching the negatively sloping 10 DMA. Subscribers: Pivots negative
Nasdaq (QQQ) Made multi year highs today but closed below with a doji day. Subscribers: Pivots positive.
ETFs:
XLF (Financials) Unable to break the 50 DMA. Watch for 19.90 to hold.
SMH (Semiconductors) Sideways consolidating action. The 10 DMA needs to clear.
XRT (Retail) Warning Phase and unable to break the 50 DMA.
IYT (Transportation) Confirmed the bull phase. Digesting the big move from last Thursday. Two doji days in a row.
IBB (Biotechnology) Impressive move today.
IYR (Real Estate) Holding the 10 DMA.
XHB (Homebuilders) Consolidating over the 200 DMA.
GLD Strong close today.
USO (US Oil Fund) Inside day and closed with a doji candle. Strong close.
OIH (Oil Services) Digesting the nice move up from Friday.
XLE (Energy) Confirmed the bullish phase and is consolidating over the 50 DMA.
TBT (Ultrashort Lehman 20+ Year Treasuries) Closed on support. If today’s low breaks, look to 77.89 to hold.
UUP (Dollar Bull) Inside day with a doji candle.
EWG (Germany) Subscribers: Inside day after making new yearly highs on Friday.
FXI (China) Subscribers: Inside day.
Bye for Now!
