___________
MARKET WRAP UP 07/27/10
Stocks more or less flatlined today, as the S&P 500 closed down 0.10% to 1113. As I have been discussing, the recent rally has brought us back to the upper end of our multi-month trading range. Despite the fact that many stocks have shown promising breakouts, we are going to need more evidence before we presume that the oscillating market has completed the metamorphosis into a trending one. Coinciding with the top end of the broad trading range, the 200 day moving average on the S&P has been tough resistance as well, since May 20th of this year. Even if we are on the verge of breaking out –and holding–above the 200 day moving average this time, we are likely to tiptoe around this area for a while longer.
As the updated and annotated daily chart of the S&P 500 illustrates below, a short term pause seems to be in order.
____________
___________
Similarly, turning to other key indices and sectors, the Nasdaq, small caps, trannies and emerging markets have all enjoyed steep moves higher. Now, however, they appear prime for a breather (see charts below).
___________
___________
____________
_____________
_____________
Finally, to update two key broad market “tells” in the charts below, $FCX could pull back here after a steep move higher, and still be operating in a bullish space. $GS, on the other hand, would be better served to continue flattening out here, as a break down below the ascending triangle would be bearish.
______________
____________
____________
With my cash position just south of 80%, I am in no mood to get caught leaning the wrong way when the market makes its next big move. My goal right now is to maintain my focus, despite my huge cash holding, because the market can be such a dynamic beast and turn on a dime. When the next direction of the market is revealed, I will be in a good position to take advantage of it.
_____________
TOTAL PORTFOLIO:
EQUITIES: 22%
- LONG: 22% ($BX $SAPE $POWR $JMBA)
CASH: 78%
I like the FCX play at the 65-66 stop area. Falcon eyes on that! Great charts as usual.
yup,excellent per “sop”!
i have gs in my crosshairs, if it even hints on breaking up!
ty
Ahhh yes … Santonio Holmes makes perhaps the greatest Super Bowl “clutch game winning catch” of all time … and … a year (or so) later … they run HIS ass out of Pittsburgh … and … “Big Ben” … the QB that threaded that needle is suspended !
Damn !
It’s gettin where NFL Superstars can’t even glance a shot glass off a chick’s face … or, rape a girl in the lady’s room of a bar !
What is this World coming to ?
But I digress !
.