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 […]
Morning Thoughts Tuesday October 25
The fifteen day rally in stocks has lifted the S&P 500 just about fourteen percent and managed to squeeze out a close above the 1250 mark but right at the 61.8% Fibonacci retracement line from the May to August downdraft. I showed this chart in yesterday’s morning note and after yesterday’s rally we are smack […]
shorted CAT
we are short CAT Jan 100 strike calls. one could also short the stock, it's just not the same payoff diagram. today's rally in the stock was nice but it also took the stock into good resistance. for an overbought tape this looks like a decent setup to the short side…Bucket 2
UA potential breakout candidate
the chart of UA looks interesting. on the hourly chart below note a 50% retracement that held and now a potential breakout above the downtrend line (red straight line). given the loftz levels the broader market trades at we are not interested in doing anything here but it is a good stock to watch. a […]
just sold the rest of our B3 long position in CSCO
it's a good day for taking profits in longs, evenin Bucket 3. we will buy CSCO again for a Bucket 3 long, but not until we see the broader market correct significantly. let them have inventory if they want it this badly. just feeding the ducks so to speak.