Late Night Strategy for Wednesday

Let’s go with Flotek as a long idea on any further strength, seen basing tightly on the first daily chart below in the energy patch.

And the steel sector appears ripe for a quick short, if you are looking to be aggressive. The sector is showing some signs of short-term exhaustion after a straight-line move into potential overhead supply, seen on the sector ETF’s daily chart, second below.

Drop me your top tickers overnight.

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Despite Goldman Sachs, and a few other stocks, notably red today bulls were able to pull off a Nasdaq bounce.

Crude oil looks coiled on all timeframes, while some of the recent rallying the global materials and emerging markets may be indeed of a pause.

In front of the FOMC Minutes tomorrow, the Yen rallies, as did precious metals and bonds.

Something, it appears, has got to give here.

Stay tuned for my video market recap after the closing bell for more analysis.

You have to love the sideshow seen in the recently quite weak-Nikkei, as well as the Japanese Yen.

As you may know, a strong Yen can often bode poorly for many global equity markets, for a variety of reasons.

And when we see the Dollar/Yen currency cross on the pair’s daily chart below, the weaker this chart is the stronger the Yen.

Indeed, the recent false breakout by the Dollar now looks to have been a clear trap, with a further rally by the Yen entirely reasonable.

Simply put, I view this as another warning sign of a corrective equity market not yet done correcting.

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Crude oil is getting some play today, as black gold rallies.

However, I am also interested in re-establishing a position in natural gas.

On the weekly chart, below, note how bulls held their own around the $24 area after the breakout and subsequent orderly consolidation.

A basic concept in technical analysis is converting prior resistance into newfound support. If that is successful, it is a wildly bullish development going forward. Hence, the $24 area takes on even more significance.

Price is pushing higher today, with a close over $26 likely setting in motion another rally.

BOIL UGAZ are leveraged long ETF’s to play natty.

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Courtesy of The PPT algorithm, here are the most current top five readings from my “12631 RELATIVE STRENGTH” custom-made screen, identifying which stocks are exuding some of the best performances to the market at-large at any given moment.

I look for stocks whose Daily PPT Hybrid Score surges, while the Weekly Hybrid has been negative over the past week. This can often yield stocks which are emerging from consolidations.

Members can click here to view and save the screen.

Sorted for at least 500,000 shares of daily average volume to ensure liquidity.

Please click on image to enlarge.

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