Friday Afternoon Charting Fun: Gold
A little perspective on the move in gold should go a long way. The inverse head and shoulder pattern that developed from November to March hit it's ultimate target almost to the dime near $153 (on the GLD). After the recent 6.5% correction the GLD found support at the rising 50 day […]
What is the Russell 2000 Index Telling Us?
On May 2nd 2011 the Russell 2000 (RUT) small-cap index landed at a fresh all-time high. From the March 2009 lows to the May 2011 highs, the measured move equals more than 150%. The S&P 500 in comparison rose just over 100% over the same time period. As the often weaker summer months for […]
Trader’s Lunch
Deere and Caterpillar Still Attractive
While today's broader tape is trading fairly boring for our taste we decided to spend some time looking into the industrial sector. We are believers of longer-term emerging market growth, where housing, roads, and agricultural demand should be strong for years to come. As such Deere & Company (DE) and Caterpillar (CAT) both still look […]
Good Reward/Risk for Longs
The S&P 500 chart gives us good reward/risk trades here. On the SPX itself stops can be placed near $1318 (Tuesday's low…which was also the 50 dma and 61.8% Fibonacci retracement), Upside targets as we see them are between $1380 and $1400, giving us a 2:1 reward/risk ration on the conservative side.
Thursday Morning Market Thoughts
Yesterday's trading action was bullish, period. Coming into yesterday morning, the market still felt heavy despite the intraday reversal on Tuesday. As the morning unfolded however something took the fear level out and markets pushed higher. Financials performed again and some of the high-beta names like AAPL and AMZN resumed their bounce higher. We […]
Panera Bread and Starbucks Ready For Selling Pressure?
If stocks start slumbering into a summer lull soon, it is likely that near-term extended sectors such as Consumer Discretionary stocks fall the hardest on a relative basis. Financials and Energy may fall less as discussed here. As such, we scoured the Consumer Discretionary stocks and found that Panera Bread (PNRA) and Starbucks (SBUX) could […]
Today’s Morning Market Video is uploaded and can be watched here:
http://steadytrader.wpengine.com/video-2/video-may-2011/
Wednesday Morning Market Thoughts
Yesterday's intraday reversal at $1318.50 in the S&P 500 lifted the index so that it could close above the 50 day moving average. The 50 day moving average has not been well respected as of late, which is why we believe an area around $1300 would serve as better support for a bounce. Nevertheless the […]
Financials Ready For A Bounce Higher?
It's no secret, the financial sector has been underperforming the broader market for the past three months. As the financials outperformed the market over the past two days however, and also developed bullish candlestick formations I thought it would be worth a closer look at where they stand. Starting with the popular XLF financial sector […]