Hovering Over the eBay Auction House

eBay reports after the bell, in addition to Netflix, and it will be interesting to see if we finally see resolution from the very well-defined sideways channel on the weekly chart, below.

As you can see, the stalemate has stretched back to the end of 2012, where vocal eBay bulls have been quieted and bears seeking a major breakdown have been shunned.

Elsewhere, fast food plays BKW WEN are acting well, while COST continues to slip under $115.

Stay tuned for my video market recap after the bell.

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The averages are basically flatlining this afternoon with mixed action underneath. IBM is weighing on the Dow, while Apple makes a go of it to try to attack $560. BBRY and TTWO are squeezing violently to the upside, while Netflix reports after the bell.

Silver is at such a critical level on the monthly timeframe, seen below. $18.80-$19 marked the primary breakout level from Labor Day 2010. It simply must hold now for bulls to stage an upside rally and follow the precious metals miners higher.

Over the past several quarters, you can see buyers attempting to stabilize price at this key level. They have been able to stem the tide of selling. However, now they must seize the initiative fully and rally us sharply.

What are you trading this afternoon?

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I locked in part of my win in UGAZ just now, a quick jump from yesterday’s entry.

In electing to take some off the table, I think it is worth pointing out a broader concept than any individual trade.

Specifically, the straight-up ETF for natty gas, UNG (first below) hit its upper daily chart Bollinger Band today.

Bollinger Bands are useful secondary technical indicators for measuring, among other things, relative tops and relative bottoms.

Here, the straight-up ETF hit its upper Bollinger Band (signaling relative overbought conditions), while my triple-levered long UGAZ has not yet hit its upper Band.

Despite the fact my money is in UGAZ, I suggest technically keying off the straight-up ETF for clues. In this case, UNG is punching its upper Band, and I am going to respect that by taking partial profits.

The highly levered ETF’s are merely vehicles to express your thesis based upon the technicals of the straight-up ETF (and futures contracts, to be even more to the point). But they are just that–Trading vehicles, and nothing more.

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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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So far, so good on the WYNN short which I posted here and inside 12631 yesterday afternoon.

Getting ahead of the House, though, is nothing new. Las Vegas casinos were built on fool’s gold for gamblers who became overly aggressive emotional, and cocky with some initial luck at the tables.

My short entry was $212.18 with a cover-stop over $218. I am playing for a quick dip before 01/30 earnings, at least down to the 20-day moving average.

If the stock holds under $210 today I will consider adding to the short.

Let’s see if the “casino hosts” try to throw some comps my way to keep my playing.

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“All I know is, I gotta lotta (eye)balls on it, as we discussed yesterday, with too many traders watching it.” -chessNwine

UGAZ is the star of my book today inside 12631, in addition to the WYNN short. Silver and coffee are disappointments and close to getting the boot.

Gold miners are seeing profit-taking and rightly so (we sold some NUGT into the bell yesterday).

And Big Blue (IBM) is still in big technical trouble.

More later.

Drop me some morning tickers.

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