potential trade: long dollar index etf
we've posted this chart a thousand times, but it is now getting to the point where we may want to add a bucket 3 long position in the dollar index again…via the UUP etf. note the confluence of support points on the daily chart below.
FFIV potential trade setup
after a huge run in 2010 FFIV this year has been trading in a wide downward trendm which the stock is again trading at the top-end of today. see the weekly chart below. so from this point of view the simplistic approach would be to short some FFIV for a mean-reversion trade. on the daily […]
stuck in a trading range?
as mentioned yesterday, given how sharply stocks have risen off the october lows we see it as unlikely that we will revisit those lows again over the next few months….but we do think that sometime around Q1 of next year stocks will break the October lows. in the meantime however the trading range we currently […]
european summit schedule:
European Council leaders of all 27 EU states meet at 12 PM EST in Brussels. That will be followed by a meeting of eurozone leaders at 1:15 PM…over dinner. so let's do some math here. 12pm et is 6pm est…if they meet at 7:15pm est over dinner and say have a three hour dinner meeting […]
Morning Thoughts October 26
It was another choppy session yesterday…filled with rumors, fake-out moves, and some earnings disasters…see Netflix(NASDAQ:NFLX). In the case of the S&P 500, the index yesterday put in an outside day and found support right at 1230, which of course is where it broke out higher from last Friday October 21. The stochastics oscillator remains in […]
a look at LULU
LULU is one of high beta trend-follower stocks that hasn't (yet) broken down like some of its peers (NFLX, GMCR). it's trading at a lofty valuation and technically speaking looks precarious to break below its 2011 uptrend line…see the weekly chart below. the second chart shows this in a daily format and also highlights the […]
UA short
we want to enter a short side Bucket 2 trade on UA before the close today…if the long tail on top (shooting star) is still there before the close. we may short the stock or buy puts…either should work. stop will be at $83.50 and a price target at $70
America is back in charge…
interesting article: http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8844646/World-power-swings-back-to-America.html
new SPX support focus area
SPX 1220-1230 support…that was the breakout level from last week given current volatility however support may not come until 1200…phsycological level buy fins on pullback transports and fins had clean breakouts last week our base case is to see a very choppy sideways movement for the next 3-6 months before ultimately resolving lower […]
important charts: transports, banks
two important charts to keep in mind are the banks (BKX) and the transports (IYT). note the bkx is right at resistance and looking precarious to break higher. if and when it does so we want to be front and center taking advantage by adding MS and BLK long. the transports (IYT) has already broken […]