Watchlist 1.14.13 | Let’s Get Outta’ Here

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It’s no secret than I am net short and looking for a pullback (and wrong so far). This market is over extended and while we did have a short digestion period, it wasn’t as healthy as I would have liked to see.

Each day this market grinds higher and I have continued to press my shorts. I will throw in the towel when we get a cash close over 1475.00. May come as fast as Monday.

On Friday, BusinessInsider.com published this chart and article. I think it’s interesting and eventually going to help return some of the volatility to the market that we’ve been missing so much, but immediately, it’s just one more reason for me to feel that a short term pullback is due. On a very short term scale I can feel the sense of bullish euphoria. Non market participants are starting to talk and ask me personally about what they should be investing in since the fiscal cliff rally. At the same time we have Reuters reporting, “the hedge fund industry saw its biggest month of withdrawals in 3 years this past December.

Long term, I am still leaning with a bullish bias. I am in the new all time highs in 2013 camp. However, I am positioned and looking for at least a 2% correction. If I am wrong I will flatten those shorts and reevaluate as I see necessary.

The watch list is going to be short and sweet because I am not looking to start any new positions while we’re in this range. After running some scans, these are the ones that caught my eye:

LONGS:

XOM – Cleared this descending trend line last week. Clearing $89.71 should bring us the gap fill of $90.73.

HBI – Still working inside this longer term ascending triangle pattern. There is volume resistance/support at $36.30.

NFLX – $101.79 gap was closed on Friday. If we can get above it with volume that level will become support. Like this name long term. DIS validated the brand & it could see $140-$150 by 2014.

SHORTS:

AAPL – The chart is still broken. The rips are being violently sold. There is no support being offered to maintain these current prices.

KO – Steady downtrend for a few months with an open gap below. Don’t chase here, wait for a retest of the moving averages.

CNX – Lost volume support and this ascending trend line on 200%+ average daily volume on Friday. First target is recent support at $28.50.

We’re gonna’ go where we have no worries,

@AffluenzaVirus

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