Unless you have been able to pinpoint the short term machinations of this market recently, you have likely been chopped up and mugged by commission fees and intraday whipsaws. With the bulls on the verge of putting together a three day winning streak, the temptation is to put on some longs, right here right now. However, the S&P 500 is struggling just below its 200 day moving average, and we are short term very overbought (see The PPT).
As I am writing this, I see that we are giving back a fair share of the gains today. Frankly, it would be healthy for this market to digest the move of the past few days. So long as we see an orderly pullback here, with no signs of heavy distribution rolling us over, I will take long positions in some of the setups and names that I listed last evening. Again, I am looking for a time frame of at least 3-4 days. Thus far during this correction, that time frame has seemed Buffett-esque, given the intraday moves we have seen.
Remember, the broad market is still unhealthy from an intermediate term perspective, so having some extra patience here is prudent. Should things get ugly again, we will have lost nothing.
At the very top of my long scans are: $CRM $MDAS $LULU $KOG $DECK $RBCN–ONLY on a pullback for that last one.
NOTE: My tell, $FCX, is at a huge crossroads right now. The $66 level is huge, as it was previous support, and is now in danger of becoming resistance. Watch this closely, as it is up against both the resistance and support trend lines.
another good read, ty!
thanks duane
Yes. This certainly is a market where being aware of what’s happening in multiple time frames is mandatory before putting one’s assets on the chopping board and speed chopping carrots. (Or something like that.)
Indeud
Chess, I have figured out how to post a pic in my articles…but how do you post a You tube post??Can I get step by step in AH?
You are better off emailing Jeremy. I don’t know all the details about it.
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pretty sure that’s it…
thaxs Spyder and Chess
I agree, some consolidation here is expected
I took a few small call spreads in FFIV and EOG
I’d like to take a decent position in CLF but after 5 up days in a row, it needs a rest
All this assumes we don’t dump again of course
A lot of good breakouts today but I’m not chasing in this market
Yeah–still a tough market.
ChessnWine- I know you’ve been keeping your eye on FCX, but what are your thoughts on CSCO? The other day, the market was up 270 points, but Cisco was down. Yesterday it treaded water. Today it broke out a bit, but failed again at the end of the day, along with the rest of the market. And Cisco’s supposed to be “cheap”. Keen to hear your thoughts, thanks!
hey genghis–CSCO has been putting in a lateral base for the past few weeks. As of now, the pattern is neutral, although it is orderly and tight, so I am leaning towards a bullish bias here. Basically, the stock has been waiting for its 20 day m.a. to slope down and comes to terms with it.
To sum it up, the fight is on. I suspect the bears know that if they can slam this one down, it will rattle the rest of the tech space. At this point, I would wait to see how it reacts to the 20 day, and I really like it above $24.