The bulls took over today after a sharp drop at the open. At this point it looks like the bulls will remain in charge until the fed meeting, unless tomorrows jobs report is a doosie. I am trimming back on positions and starting to daytrade more until after the meeting. Here are a few charts that may see some follow through tomorrow.
CTSH had a strong move today following through after yesterdays gap up.
CRY looks like it finally cleared this little consolidation area.
SII was able to clear resistance after bouncing off the 20sma.
I was emailed by the folks at InstantBull.com about their new service letting me know that I was on their blogs link. I checked out the site, and it looks very promising. For those of you that like to cruise the message boards, there is a cool feature that lets you browse multiple message boards for a particular stock. You can also check out all the news for a stock available on the major sites such as Yahoo and Google without having to browse to multiple sites. Very cool indeed. Check it out when you get a chance. I think many of you will find this site very useful.
I'm taking off for a long weekend, so I won't be trading tomorrow. BOOM reported after hours and may move nicely tomorrow for those interested in a gap play. My buddy BTUFF, who is the man with Boom's fundamentals, says it was a blowout report. Let's see if the stock price correlates.
Good Luck,
DT
The indices are back where they were on Monday after a reverse image of Tuesdays action. With the Fed on everyones mind and the big bad jobs report on Friday, it looks to me like tomorrow would be a nice day for golf or to hit the beach.
An interesting development has been the weakening of the dollar leading up the fed meeting which has been giving strength to Gold. Here is a chart of the gold index. It is right up at resistance and the 61.8% fibonacci retrace level which could cause a reversal. A lot of mining stocks are looking bullish so it may just barrel through.
Oil stocks closed a little weak and if they are pulling back here then HAL is my number 1 short. I would prefer to see an inside day that would give a tighter stop loss before breaking down.
Also, I just finished reading Intermarket Analysis by John Murphy. I will be posting a review in the next few days, but the short review is "awesome".
And in the funny lame section, I heard this song the other day on my satellite radio and was cracking up. Not sure why Joey Ramone wrote this song, unless it's as transparent as the lyrics. I found it amusing and I'm sure the CNBC viewers out there will too.
Maria Bartiromo lyrics
What´s happening on Wall St.
What´s happening at the Stock Exchange
I want to know
What´s happening on Squawk Box
What´s happening with my stocks
I want to know
I watch you on the TV every single day
Those eyes make everything okay
I watch her every day
I watch her every night
She´s really outta sight
Maria Bartiromo
Maria Bartiromo
Maria Bartiromo
What´s happening with Yahoo!
What´s happening with AOL
I want to know
What´s happening with Intel
What´s happening with Amazon
I want to know
I watch you on TV every single day
Those eyes make eveything OK
I watch her every day
I watch her every night
She´s really outta sight
Maria Bartiromo (5x)
What´s happening on Wall St.
What´s happening at the Stock Exchange
I want to know
What´s happening on Squawk Box
What´s happening with my stocks
I want to know
I watch her at the big board every single day
While she´s reporting you best stay out of her way
I watch her every day
I watch her every night
She´s really outta sight
Maria Bartiromo (3x)
Good Night and good trading,
DT
Markets had a fairly negative day that had me thinking the downtrend would accelerate, however, a strong close ate up a decent amount of the losses for the day. The Nasdaq was once again the weaker of the indices, and I wonder how many people are worried about the last bear market with techs and have been unloading ahead of time. Either way, things are still looking pretty bearish in the intermediate to long term with Oil and Gold resuming their uptrends which would force the Fed to keep raising rates at some point.
There are a lot of charts looking good for shorts.
But we'll start with a long ;). WNR held above the breakout area and had a decent day.
BTU is up against resistance and may be stalling here.
NTRI retraced a little of the recent losses but has barely made it to the earnings low. They may fail here.
GYMB is sitting on a major trendline support. Watch to see what it does here .
UARM may of broken a major trendline here and if it loses the 50sma it could get ugly.
BWNG looks like it is ready to resume the downtrend.
One of the clues to a stock being distributed is when good news fails to move it higher. CRDN released news of a contract a couple days ago and the stock popped and gave all the gains back fairly quickly. Now it moved further under the 200sma and may be breaking down.
KOMG retraced a bit higher and failed to reclaim previous support. If it
ATI ran into resistance at the descending trendline and sma's. Looks like it will head to previous pivot low.
I would look to the energy and metals sectors for short term strength. Oil stocks rallied into the close today and may be hot tomorrow with a possible hurricane on the way.
VLO is trading between support and resistance levels here. It looks like it wants to move higher.
TSO is trading a huge triangle. If it clears it, it could be a nice move.
OMNI has been a great performer, and looks like it is gaining steam agin.
AUY is an interesting gold play as it completed a reverse heaad and shoulders today. The target puts it at the 52 week high.
Good Luck,
DT
Natural Gas was up 14% today and is up about 50% in the last two weeks. While it is extended right now, it looks like Natural Gas will be the commodity du jour for this hurricane season.
Here is a chart of the Natural Gas index. This looks like a bullish breakout with two resistance levels recently cleared.
CMED may finally have bottomed. They cleared downtrend resistance early in the day, but pulled back to the resistance zone. What is encouraging however, are all the positive divergences in the indicators.
HANS formally announced their earnings date today after the bell, and are an earnings run candidate. They may clear the little pennant / channel and make a run for the previous 52 week high.
I've been trying to locate shares of FMD to short for a few days now, but can't find any. This however, may be a good play for the options crowd. It looks like it is headed much lower to me.
Good Luck,
DT
It's getting late so I will be brief. The SP500 broke it's neckline and is in short term rally mode. The Nasdaq is in terrible shape overall, but semiconductors were strong Friday. Small Caps are still lagging which is a clue as to the overall sentiment. All the indices are going up on lighter volume, so this rally should be suspect until volume confirms it. Here are some charts worth watching.
Oil continues to drift down but is holding the declining trendline as support.Watch for a move to either direction.
Natural Gas has been touted as an alternative to Oil plays and CHK just broke a trendline on the weekly chart. Also notice the Parabolic Sars buy signal.
HAL is trying to retrace some of the recent declines but may have some trouble here at the gap and 38.2% Fibonacci Retrace.
BOT looks like it cleared a cup and handle here.
WNR had a strong move friday clearing resistance. I would wait for an entry near the trendline.
NEU looks like it is clearing a descending trendline here.
MWIC had a huge move Friday and may of cleared this sloppy base.
CTSH has been trading these nice little channels and may be headed up to the upper resistance trendline.
ALJ may be ready to clear resistance. Notice the uptick in volume.
Thats it for tonight.
