Preserving the Silver Move

I sold my AGQ (ultra-long silver ETF) inside 12631 earlier in the week, and noted it on this blog, in large part due to the metal running directly into its major resistance trendline dating back to the 2011 top–You can see as much on the first weekly chart below for the straight-up silver ETF.

The good news, as we can see on the second chart of the daily timeframe, is that silver is consolidating tightly so far without much giveback. There is still a ton of work to do to establish a new bull market for the metals and miners. Taking it one step at a time, though, yield a so-far-so-good result. I want to see a move back over $21.13 now.

What are you trading this afternoon?

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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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Just a morning announcement that the biotechs are essentially going parabolic to the upside, seen the sector ETF monthly chart, below. We had a good BIS trade (ultra-short biotech ETF) a few weeks back inside 12631. But I have been patiently waiting for another go-round.

Headed into next week, though, and perhaps March, I am looking to fade this move.

Another strategy may be to fund quality, not overly-extended mid-cap biotechs on the long side and pair that off with a sector short.

Which are your favorite biotech longs at the moment? Who is trying to short?

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While CORN is seeing some profit-taking and volatility this morning, the sugar ETN continues to set up nicely. We looked at this one throughout the week, and this morning’s action is promising. On the first daily chart below, note the bottoming pattern still setting up. Let’s see if bulls can make this the next soft commodity to go higher. $55 should probably hold for the bull case to stay intact.

Also, Groupon is closing in on major support at $8.40, second chart below. It will be interesting to see if bulls defend there.

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If you are looking at Verizon as a long-term investment idea, including its 4.4% yield, the good news is the thesis behind the play works best as long as $45 holds.

On the monthly chart, below, note the significance of this level dating back many years. Indeed, it is a very good way to define the risk of the long, even if it is an investment.

More on this later.

Which stocks are you looking at this morning?

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Members of The PPT can click here for biotech screen.

Here are a few results for everyone else to see.

Please click on image to enlarge

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