Open Trade Update
Trade: XLF
Instrument Name: S&P Financial Spdr Fund
Existing Position: 17.96 Long
New Stop: 17.49
First Target: 18.75 (take off 1/3 or so)
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Analysis for Friday, 3/8/13
The big news is that the small caps, Russell 2000s, closed on new all-time highs! As did the Dow! And as I wrote earlier this week, with the new found euphoria, overbought conditions were not as important as they might be when volume is heavy all along (volume light again last 2 days ahead of the US Jobs Data). The dollar came down some after Draghi spoke, yet the bond rates rose. Please note that I have written about higher rates as good for the US stock market for over a year now. In the sector rotation, oil and energy firmed while transportation, real estate and biotechnology took a rest. Financials are strong and semiconductors-stuck in the middle of a critical range.
S&P 500 (SPY) 2007 peak high 157.52 with 154.00 now good point to hold Subs: Positive Pivots
Russell 2000 (IWM) Uncharted territory now unless it fails to close the week out over 92.54 the old 2013 closing high. Subs: Pivots Positive
Dow (DIA) Another new high
NASDAQ 100 (QQQ) Inside day. Subs: Pivots positive-good one to note and follow the range break up or down
GLD So far, holding the low from 2/20 with an inside day today.
XLF (Financials) Looking a bit parabolic. Subs: 18.37 is 1.5 ATRs from entry if want to lighten there on a hybrid trade
IBB (Biotechnology) Taking a breath and at the top of a weekly Bollinger Band.
SMH (Semiconductors): Now it's all about 36.00 Subs: If took the swing trade, 35.15 good area to hold. If looking to enter long, RSIs came down a bit
XRT (Retail) 69.00 has been a bit of a wall to push through. Will watch what happens here closely
IYT (Transportation) Took a breath. Subs: The monthly chart and how to look at this featured on today's video.
IYR (Real Estate) 2 day correction or early warning sign? We should know more with tomorrow's action.
USO (US Oil Fund) Tested the fast moving average but did not retreat much from it which means looking like a near-term bottom has formed.
OIH (Oil Services) This group is sitting in limbo. Has to clear this week's range one way or another Subs: Closed the gap to 42.71 in the post market so eyes here
XLE (Energy) 78.72 is the point to clear then could go the way of the other groups that have rallied big
TBT (Ultrashort Lehman 20+ Year Treasuries) Confirmed phase change to bullish Subs: Not yet overbought which is amazing
XOP (Oil and Gas Exploration) Subs: Nice move out of the 59 resistance
XHB (Homebuilders) 2 day correction or early warning sign? We should know more with tomorrow's action.
EWI (MSCI Italy Cap Index) Subs: Still long and will manage the trade as a swing. Through today's high could be an add.
Bye for Now!
