Who is going to Hell, and who is going to Purgatory tonight after SCTY earnings?
Tell me if you are playing it, and how so.
I took some profits in SGG SKUL today, while making other moves inside 12631.
Be sure to catch my video market recap after the bell for Tuesday homework.
http://www.youtube.com/watch?v=ObglF8WUsWM
Comments »
Keep an eye on the gold miner ETF over $27 to see if we get another breakout higher–The 30-minute timeframe is below.
Also watch natural gas, per my last post, as it bounces back intraday. A lower high would be tough on bulls headed into the rest of the week.
In the softs, corn is making a valiant comeback again today. The sugar strength continues. And keep an eye on cotton.
As far as equities, MPEL is shaping up nicely.
___________________________________________________
As commodities continue to be in focus for me as actionable ideas here and inside 12631, note the 15-minute chart below of the natural gas ETF.
After a strong prior uptrend, we saw opening strength faded quite aggressively today. Not only have we seen a sharp gap fill lower, but this afternoon bulls are not putting up much of a fight, as we could be bear-flagging. As they say, from false moves in one direction often come aggressive moves in the other.
If $26.60 now acts as resistance on bounces, I think you can look at shorting natty via a few of the bearish ETF’s if you do not play the futures.
Overall, natty has seen a tremendous run in recent weeks. However, we may see crude now begin to outperform on a relative basis as recent natty gains are digested.
What are you looking at this afternoon?
_______________________________________________________
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.
________________________________________________________
In addition to the biotechs and marquee names like Netflix shooting for the moon this morning, along with the major averages, also keep an eye on DFRG P for further strength. Both charts have been tightening up. Keep in mind, though, both stocks have earnings comings up in the next two weeks.
In addition, the note the outperformance by silver over the miners this morning–Something to definitely keep tabs on going forward.
______________________________________________________
______________________________________________________
Into this sugar run higher this morning, I sold down a piece of my SGG long inside 12631 to lock in some partial gains, which is one of my largest positions at the moment. I got a pretty good fill on the sale, as price hits its 200-day moving average for the first time in a long while, continuing to confirm the inverse head and shoulders bottom on the daily chart below.
This sugar trade, among other commodities, is something we have been tracking for a while now here and inside 12631.
Elsewhere this morning, biotechs are blowing off and close to seeing me take BIS to short the sector, although a few individual names here and there look decent.
Also keep an eye on BBRY for a short squeeze higher over its 200-day moving average.
What are you trading this morning?
__________________________________________________
