The markets are not all working their way higher as nicely as you might believe if you're focused on last week's impressive 5 up days in a row statistic. Consider this set of facts:
1. The bulls have the Q's on their side, as it has now closed over the 50 and 200 day MA, but
2. The SPY's have lagged somewhat based on their standing relative to Sept. 1 highs
3. The DIA and IWM can't even muster up enough strength to exceed Aug highs!
Last week was impressive, but given the fact that all 4 market watch charts have negatively sloped 50-day MA's that are under their 200-day MA's, it should be expected that we'll see a pull back into last week's range. The Q's are bumping up against the 57 level which would be a very logical place for at least a short term-top based on the July swing low and the 200-day MA.
Friday was up, but it was more or less a consolidation day. This will make it easy for the markets to find themselves trading under their pivots. The pivot stack and OR location relative to the pivots should be a strong consideration in deciding which type of trade to focus on. In a bear market rally like the one we're experiencing, make sure you are very aware of any short OR reversal below the pivot or in a negatively stacked condition.
Long Focus
GLD
SLV
WYNN
CMG
BIDU
SINA
HUM
CERN
CELG
GMCR
SINA
PANL
BIDU
CREE
PCLN
MA
V
Short Focus
ATI
CTRP
SMG
TZOO
JOYG
EWZ
CAT
SLB
CPX
FSLR
ACOM
SHW
CPT
