BlackBerry may very well be setting up for another short squeeze higher after this 20-day moving average pullback. The stock still has a ton of work to do to reverse its long-term downtrend.
However, the relative strength today is impressive, with plenty of shorts in the name to fuel an upside move over $10.
And the soft commodities continue to spike, as seen on the DBA ETF, second chart below.
As a group, they have now moved back to their declining 200-day moving average (yellow line), though. So, I would expect them to slow down soon. If we see another immediate surge in strength here, ignoring overbought conditions in coffee, for example, it could be seen as evidence of a major bottom at hand, in lieu of merely a sharp bear market rally.
What are you trading this morning?
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Sugar following coffee’s lead.
Yup
Longs; JO [largest position], CORN, UPL, FNV & GDXJ
Nice!
I’m in three of those and DBA/DJP instead of CORN.
Same old ones I always offer. Boring old guy here. STXS and ZIXI might be worth checking out.
Good stuff
Took my eyes off BBRY for a few weeks and she flies to 11, damn.
Chess, does the differing daily price action in XLU and XLP mean anything? I figured the defensive sectors would trade roughly the same following yesterday’s dump.
XLU was due for profit-taking. XLP a concern.
Rally in softs seems out of place to me in the general context of things. I’m watching for setups but maybe a more cautious approach.
Lots of people skeptical of it, though, Mike.
Didn’t know that. Could be a help. I’ll take a good set up, but it needs to be real pretty.