The Initial Shake

I am keying off the small caps again, today.

On the updated, zoomed-out look at the small cap ETF dating back to July, the issue is whether the recent falling channel breakout can now hold true for a higher low. A failure to hold is typically quiet bearish and leads to a waterfall lower as trapped buyers scramble for the exits, though that is a phenomenon we have rarely seen since 2013.

Should the bulls firmly hold $112 it should also stem the tide of selling for now and puts shorts in a spot of having to cover.

On the long side, a name like TWTR is moving nicely in its own world again.

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The NBG long setup we looked at over the weekend in Greece is playing out so far, as the bank is rallying off recent lows after positively diverging from the GREK country ETF. Trade against those lows if you are in it.

As far as Russia is concerned, I stepped off my short last week, However, if the Russia ETF, second chart below, loses $23.92 today I would consider putting on RUSS (triple-lveered short ETF) for a her flag rollover.

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With RAX and many cloud names getting hit this morning, keep an eye on CRM as a short.

The chart for Salesforce was already vulnerable, as you can see on the updated daily, below. Amy further weakness should trigger a breakdown from the recent bear flag and broader loose and sloppy formation since late-last year.

On the long side, precious metals and miners intrigue me most here. More on this later.

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The following is just a small excerpt from my latest Weekly Strategy Session (please click on that hyperlink for details about trying it out). which I published for members and 12631 subscribers this past Sunday. 

 Although they have been heartbreakers of late (tons of head-fakes higher and failing to sustain upside follow-through), the precious metals miners and global materials miners are setting up nicely again as longs. 

First, the weekly chart for the senior gold miner ETF shows a tight technical base spanning the past month or so. Another move over $27.06 likely brings in more buyers to resolve this consolidation higher. 

Also note the long-term bottoming thesis for the gold miners, dating back over one year now, is still very much in play with the potential for an inverse head and shoulders pattern to send the miners much higher in the coming months. A stop-loss not much lower than $25.40 is suggested. 

Regarding global miners, CLF WLT represent the setups we have seen from materials and coal miners of late, some of which have fizzled out. However, it is worth stalking them again given how the charts have tightened up. In addition, these are heavily-shorted issues capable of squeezing much higher.

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For you night owls out there, consider the head and shoulders top now confirmed for Las Vegas Sands.

Once that $71.10 level was breached, the floodgates sure did open lower.

To be sure, concerns about the wealthy in Asia may very well be affecting the “largest casino in the world,” own by Sands in Macau.

What say you? A true top? Or another fake-out, crushing the dreams of bears?

Speak your mind, night owls.

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It has not done much of late, except perhaps base out, but Aeropostale is still a beaten-down short squeeze idea on the long side over $3.42

Also keep an eye on Facebook over $74 and Twitter over $43.60, not to mention precious metals miners on further strength.

And on the short side, keep COP CVX XOM on watch for bear flag breakdowns.

Drop me your top tickers overnight.

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