Morning Thoughts July 23

  • Last Friday’s reversal gives us reason to be cautious again on the long side.
  • We closed 2/3 of our long position in SPY late Friday at the weak close.
  • Today’s close will be important; a weak close may intensify a sell signal while a moderately strong to strong sign would be further bullish.
  • The S&P 100 represents around 80% of US equity market capitalization
  • Within that index 53% of stocks are currently  in bullish patterns – 150 day moving average turned up or is about to
  • 25% of stocks are in bearish patterns – 150 day moving average turned down or is about to


Three important charts/trade ideas;

The S&P 100 looks remarkably strong…

Haliburton (HAL) is showing an inverse head and shoulders pattern currently that works to about $33

Pfizer (PFE) while overextended immediate term is strong like bull…

CVC too looks juicy to the long side as long as it can push past resistance










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