Copper vs. S&P 500

copper finally filled that gap to the S&P 500.  question now is whether teh SPX will fall or copper's drop is overdone.  we tend to think the former is the play.

Dollar Correlation With Stocks

it's almost uncanny, check out this inverse correlation of the dollar index bs the s&p 500 on a 10 day 60 minute chart:

Various Market Thoughts – Time To Shorten Trading Horizon

Despite a bounce in the major averages yesterday, the market remains in no-man's land and is churning away. Given all the headwinds I discussed here tirelessly I think the direction of stock prices over the next two months is flat to down.  As such we are increasing our focus on shorter-term trading in Bucket 1 […]

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 […]

Technology Sector vs The S&P 500

As I scoured the S&P 500 sectors over the weekend in search of the'easiest' hedge/short I came accross the technology sector (as measured by the SPDR Technology Sector ETF XLK) and noticed the following: 1. While the XLK is currently still 10% off the 2007 highs, it did put in a more than solid performance […]

Mind The S&P Futures Gap From April 20th

On May 5th the top of the large 15 point up-gap from April 20th was tested but never attempted a fill.  Last week Wednesday, Thursday and Friday the tape again felt heavier.  We are thinking that should this April 20th gap again get tested it could then have a good chance of filling.  If the […]

Quick End Of Day S&P 500 Chart Looksy

Silver was about the most exciting thing happening today while stocks slapped around the unchanged mark, at least as measured by the broader indices.   As such the SPX is still right at the resistance area near the 1337 area.  This week is sure to bring some action soon enough with earnings, FOMC meeting, and […]

S&P 500 Daily Chart Analysis – April 21

As I've been discussing with Premium Members over the past week or so, the S&P 500 is starting to get into a position for a nice move higher, potentially as high as 1440.   On the chart below let's notice a few key parts.  First, the 50% retracement of the December lows to the February […]