Following-up on my last blog post about coffee, 12631 member @StuOnGold offers the above chart on the coming bullish seasonality. Perhaps this may add fuel for the next leg higher, too.
As for equities, into the final hour the we can see the grinding session taking hold. Watch for resolution from the triangle, below.
But we do have the Fed tomorrow. So I am inclined to remain flat until after the announcement and initial reaction.
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The coffee ETN initially broke out, but now came back in and squatted.
However, today the commodity is sharply reversing higher, forming a larger “handle” in the cup and handle pattern I outlined a while back. It is now back on my long watchlist for a sustained secondary breakout higher.
Also keep BAL on your radar long for a base breakout.
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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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Today’s price action in FEYE SPLK TWTR WDAY YELP, after their endless selling for weeks on end, suggests that sellers are finally backing away and multi-day bounces could easily materialize.
We have the FOMC Meeting tomorrow afternoon, too, which has me flattening out inside 12631 again. I am nearly full cash here, trying not to get too chopped out in the price swings.
Natural gas and the precious metals miners still have my interest the most here on the long side today.
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The small caps in the Russell 2000, seen on their 30-minute ETF chart below, are coming in a bit intraday as I write this.
I would still look for a move over $112.50 to make a higher low, which we have not yet seen. Until then, I am assuming a market still at risk of rolling over.
Also keep an eye on natural gas (UNG) over $26.70.
Overall, I am still looking be nimble and defensive.
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The following is just a small excerpt from my latest Weekly Strategy Session (please click on that hyperlink for details about trying it out). which I published for members and 12631 subscribers this past Sunday.
The consumer discretionary stocks have quietly struggled, failing to muster much of a bounce despite quite a few names in the space being badly beaten-down.
On the weekly timeframe for the consumer discretionary ETF, note the long-running bearish RSI divergence to price at each all-time high since late-2013.
For reference, the RSI is simply the “Relative Strength Index” used to identify changes in technical momentum. Above 50 is generally considered a bullish RSI, with above 70 viewed as overbought. Trending below 50 is considered a bearish RSI pattern, with below 30 considered oversold.
Here, the RSI has been trending lower as price made fresh highs for months on end. This circumstance indicates that buyers are growing weaker with each subsequent thrust higher in price, in terms of their upside momentum.
Thus, risk still remains to the downside for the consumer discretionary stocks.
A much stronger end of the market has been the…
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