SPX 30 min is still making higher lows and might even be able to redeem itself with a higher high if we continue today's rally with more of it tomorrow.
QQQQ...resistance still there...no change in stance
XLF forming a beautiful bearish flag...almost textbook. oscillators and volume reveal weakness...
IWM...i only show this chart to show how today did nothing for the charts. We are still stuck at resistance just like many other charts
MDY is at resistance too. Volume disparity between the bulls and bears lately are crazy. This is another chart that shows the decreasing momentum of the bulls...
UUP is at resistance still. Nothing changed. I did notice a bearish sign when looking at the volume history though
USO still in a downtrend and was unable to add to yesterday's gains...volume looking bullish though as today's fall was on very weak volume
Analysis: I overreacted with selling positions yesterday because of timing issues. But when looking at yesterday's analysis and today's charts, i realize that my analysis of yesterday still stands. I still favor a fall from here than a continuation of a rally. But as we still haven't broken support yet, i am not packing my portfolio with shorts. In fact, as of today, i have a long position in tech and a short position in financials. My rationalization for those positions is that if this rally is to continue, QQQQ has the best chance to break resistance and if we are to breakdown, XLF will be the one to lead us lower. The key to watching tomorrow's action will be oil, as its right at its channel resistance. It should be a good indicator for future price action in the market
Game Plan: I am faily neutral right now but am a slight 60/40 bearish at the moment. Once i become more sure of 1 side, i plan to dump either my long or my short position. I don't recommend buying more positions before we break either support or resistance. In fact, i don't recommend even holding many positions into tomorrow. It is tough money right now...in a few days, it might turn into a cherrypicker's market...If i had more patience and didn't love the thrill of the market, i would have stopped myself from openning positions today. It was just too tempting to buy in as this market is so technical right now. Its a beautiful time for technicians...Nothing else makes sense...haha...
Buy List:
casinos (mgm, lvs, wynn)
consumer related (rost, shld, gm, nflx)
tech not at resistance (rimm, nvda)
bond insurers (abk, mbi)
NDAQ
CTX
Sell List:
all energy, oil, and gas related
all agriculture and commodity related
stocks at strong resistance (aapl, msft, intc)
financials that didn't rally much lately (leh, mer, ibn, xlf)
CMG
Big Movers List (will make a big move but dunno in which way):
CY
HES
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