I hope Tuesday will be more helpful in revealing the market's short term direction than Friday. While the main trend is down, the last few weeks have created a wide range consolidation pattern which will likely result in a large move in either direction.
Friday wasn't all that helpful because with a report of the worst job data we've seen since Sept. 2010 it's natural to expect a gap a lower, and essentially that's all we got. No volume. No real attempt to rally. No real follow through to the downside.
Friday was the last "summer" trading day and the day before a long weekend so it is not surprising that the markets lacked volume and follow through. We'll look out for it on Tuesday, especially on the downside.
However, there is a bullish case to be made here that should not be ignored. If you look at the SPY's you'll see its 10-day MA is now positively sloped, over the 20-day, and the market held there Friday. This plus the fact that it has not taken out the daily trend line from the recent lows should be watched for support.
In looking for stocks for the short Focus List it was hard to find stocks that still had a negative 10-day MA. And on the long side there are quite a few stocks that have decent daily trends and have retraced back to the support of strong 10-day MA's. If the market breaks down on Tuesday I would like to be short stocks with weak daily trends and trading below the 10-day MA. If the market holds and rallies, the opposite is true. There are stocks on the long Focus List with negative pivot stack, but they made the list because of the quality of their retracement.
In summary this Focus List is ready for a move in either direction on Tuesday, but don't lose sight of the prevailing negative trend. For the short side I'll focus primarily on market ETF's, and I'll favor OR breakdowns and short OR Reversals with a close eye on the prior day's range as key support and resistance.
Long Focus List
GLD
SLV
CDE
GDX
SLW
TLT
FNSR
AGU
CF
POT
ALXN
AMZN
BBBY
GMCR
COG
ED
FDO
SINA
MRX
JAZZ
PANL
ORLY
REGN
Short Focus List
CVD
ESI
FSLR
GS
KSS
OPEN
PRU
