Silver Looking More Constructive Again
We're playing this very carefully, but Silver did now construct a fairly solid bottom. As of this morning it is moving up to the $35.80 mark again, which has served as resistance on a daily closing basis for the past nine trading days. A move above that level could lead to higher levels. Gold is […]
Saks (SKS) Important Technical Juncture
We highlighted Saks (SKS) earlier this month here http://steadytrader.wpengine.com/chart-of-the-day-saks-sks/ The narrowing trading range has so far resolved to the downside but for us still too early for a trade given the critical juncture of the overall market and especially the technical development in SKS itself. On the chart below note how SKS fell out of the […]
Tight Trading Range…Breakout Soon
This morning the S&P Futures gapped down 13 points at the open and have traded in a 7 handle range since. Clearly bulls and bears are fighting it out here and something will give one way or another soon. As of this writing all sectors are trading down for the day and Energy, Industrials, […]
J.C.Penney (JCP) Short Candidate
JCP dropped just over 6% last week if measured from the close of the day ahead of earnigns to the close on Friday. On the day of the earnings however JCP left an ugly outside day if we're ever seen one, followed by follow-through on Friday. Various other retailers also acted up last week, Aeropostale […]
Early Monday Morning Market Looksy
Ain't no shame in this game…and risk assets are tumbling early this morning in Europe. The dollar is a beast and ramping higher. Looking at a chart of the Euro Stoxx 50, note the support area at the 200 day moving average (blue line) that got violated to the downside today. Also note the next […]
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.