Sailing Around

That’s what the small caps in the ETF for the Russell 2000 Index continue to do on the 30-minute timeframe, first below. Note the initial breakout this morning over $115.20 failed—More sailing around inside a sideways range.

And the second chart is the gold one I referenced in my last post. Note the key is holding $118 as support for any type of bottoming formation to have credence.

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Natty gas is getting worked over today, retracing back to the $19.80 level I mentioned yesterday in a post. I am looking to see if bulls can hold this key (prior breakout) level on a closing basis.

However, gold is firming up again. I am close to taking a shot long with the yellow metal this afternoon.

More on this later.

Drop me some tickers.

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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JO is not doing much today, but it is still holding over $23 like it needs to and is perhaps bull-flagging.

If the coffee thesis interests you, check out this piece.

Some excerpts:

Coffee has been under pressure due to high levels of production out of the world’s largest coffee grower, Brazil. But supply is expected to be lower in 2014, particularly due to recent inclement weather.

December 2013 was “an extremely wet month” for many parts of Brazil, the NASA Earth Observatory reported. And rain can damage coffee plants, reducing output and consequently boosting price.

“We have seen quite a turbulent move to the upside, and that’s because of some forecast changes,” said futures trader Jeff Kilburg of KKM Financial.

“We saw forecaster Volcafe tone down their optimistic estimates. A lot of folks have been thinking about 60 million bags [of supply], but what we saw in December down in Brazil is a substantial amount of rain, potentially damaging the product. Therefore we are seeing the forecast drop down to 51 million bags, and that really put a sense of urgency into folks coming in and buying it.”

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I am seeing a ton of fades this morning off the open, with momentum few and far between. In the retail space, M is up big while BBBY is gapping down.

I still see Starbucks as a short idea, with the bear flag potential on the daily seen below.

Other than that, I do not see a bunch of immediate long setups to pounce on yet.

What are you trading this morning?

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Give credit to 12631 Trading Service member “Richmond” for these two long ideas headed into today, both set-up well on their daily timeframes, below.

Drop me your top trade ideas this morning.

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