Late Night Strategy for Friday

The chart of the S&P 500 futures which I present below, dating back to mid/late-December, should emphasize why I have mainly been focusing on the more energetic opportunities in other asset classes like natural gas and precious metals miners of late–Note the sloppy, sideways action with no net progress.

This evening, futures are still soft as the S&P probes multi-week lows. Whether or not this action marks the beginning of a true correction or even major top is irrelevant to me in the short-term, as I am focused on the most viable opportunities in front of me at any given moment.

Headed into Friday, keep an eye on UA as a short on weakness, while little FRED is a long idea.

I am still stalking re-entries/adds in natural gas, precious metals & miners if the constructive action continues.

Drop me your top tickers overnight.

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We are staying on top of this market inside our 12631 Trading Service, which @RaginCajun and I direct here at iBankCoin.

If you enjoy my work, then I’d encourage you to click on this 12631 hyperlink for more details about joining. 

Enjoy tonight’s video, and enjoy your evening. 

Direct Vimeo Link Click Here

Starbucks has earnings after the bell and has already corrected sharply. So, as you can see on the second daily chart below I would take a hands-off approach until we see the reaction tomorrow.

That said, the other coffee stock I have been arguing as a potential short has been Dunkin, seen on the first chart below. They report in the first week of February. I still think the stock gets dicey under $46, well-defined support.
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I took some chips off the table in my WYNN short, and sold out of my UGAZ long today inside the 12631 Trading Service.

I took those chips up to the “cage,” as it is known in the casino, or the cashier. I did this mainly as Steve Wynn will be stealing the show on his earnings call next week.

Here was my note to members about WYNN:

Covered 1/2 of 1/2 (position) $WYNN short @ $204.37 from $212.18 entry to lock in partial profits into today’s weakness. Earnings are coming up next week so I am inclined to take gains rather than add to a winner. 1/4 position short left.

Overall, the market has an orderly feel to it for a down day on the Dow. This can be construed as either a good sign of a lack of panic or, instead, an ominous sign of complacency and more pain ahead.

Simply put, I am focusing on what is working well, which continues to be sniper shorts, natural gas and metals/miners longs. Obviously, the miners have been outperforming the metals. So, I am betting the metals will play catch-up.

As far as long ideas, keep an eye on a name I have previously mentioned as a beaten-down short squeeze candidate: ARIA, for further strength.

Two 10-minute timeframes here.

Gold miners triangulating in a symmetrical manner (highlighted on first chart below) at the apex. Watch to see if the upside momentum continues. I still have a piece of NUGT left on long inside 12631.

And the QQQ ETF is at the apex of a triangle in a downtrend (only on this timeframe, of course).

I am watching to see how these consolidations resolve this afternoon. Typically, the prior trend on this timeframe, up for miners and down for the Q’s, suggests that will control the directional break.

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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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