We came into this week expecting a possible trading range expansion with the caveat that how the indices closed was more key than how they behaved intraday. Furthermore, we also anticipated a muted start of the week ahead of the FED meeting, possible Scottish secession, Alibaba IP, plus all the rest of the potential horror shows circling the globe.
However, we also believe that this week will go out with a bang. Til we have clarity on which side of the gun the market will be on (shooter or shootee), best to keep trading more active-day trades to miniswing trades.
Concerning indices, the DIA was the star holding 170 yet not closing strong enough to impact the Russell 2000s which said goodbye to both the 50 and 200 DMAs. SPY did the “break the trading range low intraday” thing only to trade back above it and finally, NASDAQ with some huge momentum name drops (TSLA NFLX Facebook), gave up 99.00 yet held the upward sloping 50 DMA handily.
Energy, Oil and Metals saw a bit of a relief today. Otherwise, the major sectors and groups except for the Financials closed decidedly red. One thing seems certain, all eyes are on the FED and the next direction for rates.
No matter what happens, opportunities always present themselves and those with patience and a system will be rewarded for having both.
S&P 500 (SPY) Still appears to be coiling and will like better over 199.41Subscribers: Negative Pivots in all except DIA
Russell 2000 (IWM) Since July, this has lived in its own sad universe. Monday, it went into an unconfirmed distribution phase
Dow (DIA) Coiling and in much better shape now than the rest
Nasdaq (QQQ) We got the break to the downside, but with a strong upward sloping 50 DMA below, not too negative regardless
XLF (Financials) Range bound but solid
KRE (Regional Banks) There’s the start of the consolidation expected-has to hold up over the 200 DMA
SMH (Semiconductors) Close to the 50 DMA and could be setting up for a low risk buy
IYT (Transportation) Rangebound
IBB (Biotechnology) 265 held which is a good support area
XRT (Retail) Last week’s low 87.68 now has to hold
IYR (Real Estate) Oversold for sure
ITB (US Home Construction) Inside day and still possibly coiling
GLD A little bit of a relief
OIH (Oil Services) Maybe this has bottomed for now
XLE (Energy) Maybe this too has bottomed for now
XOP (Oil and Gas Exploration) Subscribers: New low then closed back above the 200 DMA-needs another day to decide where it wants to go next
FCG (First Trust ISE Reserve NatGas) Subscribers: Maybe this has bottomed for now
TAN (Guggenheim Solar Energy) Subscribers: Huge drop which will give us a buy opportunity at some point-space was getting crowded
TBT (Ultrashort Lehman 20+ Year Treasuries) Confirmed the recovery phase
UUP (Dollar Bull) Totally Consolidating
IFN (India Fund Inc.) Could be getting ready again
FXI (China Large Cap Fund) 40.00 to 40.30 key support especially after the island top
