Monday got off to a great start with news of February Existing Home Sales rising 5.1%, the largest increase since July 2003. We added a few more longs to the watchlist and as we said before, since the market is strong watch for relatively weak stocks to short. Long: CTRP – Bull Flag: Use the top of the consolidation for entry. JCOM – Triangle: Enter on the breakout or the retest. MOS – Ascending Triangle: This can be an anticipatory…
The four major indices (S&P, Dow, NASDAQ and Russell) finished up slightly on the week, but not before touching the S&P 800 level we talked about. The pullback late in the week feels weaker than in weeks past, the 50-MA acted as a resistance level while the 10-Day MA is acting as support. Following a withstanding rally in week 11, week 12 economic news hinted that confidence may be instilled in the markets sooner than previously thought.The breadth ratios on…
In the week ahead make note of these important economic announcements.· Mon: Existing Home Sales 10:00 AM ET· Weds: Durable Goods Orders 8:30 AM ET· Weds: New Home Sales 10:00 AM ET· Thurs: GDP 8:30 AM ET· Thurs: Jobless Claims 8:30 AM ET· Fri: Personal Income and Outlays 8:30 AM ET· Fri: Consumer Sentiment 9:55AM ET Treasury Secretary Timothy Geithner will hold a briefing at 8:45 ET on Monday in efforts to stabilize the financial system. He is also delivering…
While we found more bearish signals over the weekend, many of these weak stocks are holding at their 10 and 20-Day Moving Averages, and remember, a stock will be most likely to act in the path of least resistance. Easing into the week and staying Delta Neutral will help keep your portfolio balanced until a clear trend is established.Long:AAPLAZONFLX Short:CHTTFASTIARTPLLWATWWW More Shorts (Caution: 10/20-Day MA’s turning higher):AEEAVYBKHCLHNATIPAYXSWXVVCWCN
The longs overpowered the shorts last week making some nice gains. Click to see last weeks watchlist in detail. ARO & XLNX – Broke out and is retesting the old resistance (which is now new support)BR – Holding sidewaysGEOY – Fell back to the prior swing low where a new entry was established over the high of 3/16, earnings are coming up so be warnedSVR – 7 up days in a row and climbing ADBE – The stock moved higher…
Developed by Richard Arms in 1989, the Arms Index, also called the TRIN (TRaders’ INdex) is designed to detect overbought and oversold levels in the markets. The indicator looks at the number of advancing stocks versus declining stocks combined with how much volume is flowing into these stocks. Using the Trin This is a contrarian indicator, meaning it has an inverse relationship with the market. A ratio of 1 means the market is at parity, above 1 indicates more volume…
Looking at an hourly chart of the S&P, we seem to be breaking a Fibonacci Levels, pulling back, then bouncing off to the next Fibo Level. Looking to the market internals intra-day can help confirm whether or not the pullback is buyable.
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