Took Advantage of the Morning View

In front of the natural gas inventory report coming up at 10:30 am EST, I sold my long UGAZ position inside 12631.

I had previously discussed my thesis for playing the levered long natural gas ETF earlier this week, if only for a quick scalp from beaten-down conditions. I still think natty may have more room to bounce, but I would rather take down the quick win here than gamble through the report.

Here was my note to members:

Sold $UGAZ Long @ $16.04 from $15.17 entry in front of natural gas inventory report for a win. May seek reentry after the report and reaction.

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. 

 As resilient as the transportation stocks have been, it is worth noting the “shooting star” potential bearish reversal candlestick printed for the month of July on the monthly chart of the Dow Jones Transportation Average. Further weakness in August would go a long way to confirming this potential major change in trend. True, there have been plenty of false topping candlesticks along the way higher in this ferocious bull run, but after a steep uptrend on this monthly chart we would be remiss not to pay close attention to this one. 

Also pay attention to the likes of FEYE SPLK, two growth stocks which got decimated this spring. After multi-month, grinding rallies, if they now roll back over for another leg down it is another huge warning sign for the broad market.

Please click here to continue reading

If you are looking for some (quick) support buys here, a good algorithm screen to have, courtesy of The PPT, is one I made called “12631 Quick Bounce Plays.”

In the screen, I am looking to isolate stocks with positive daily Hybrid PPT scores, but negative weekly ones.

Thus, they are ripe for a quick bounce as the momentum seems to be turning, if only for a bit. I also screen for PPT Relative Strength scores, as well as volume and % from 50 day moving average.

Members please click here to view and save the screen

Here are the readings as of Wednesday’s close. Remember, we are talking about short-term flips here, not high quality, multi-week swings. Keep those stop-losses in place.

Note that there is only one reading here–Perhaps that is a sign of a weaker market?

(Click on image to enlarge)

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With names like FEYE SPLK notably weak and in danger of rolling over to fresh correction lows, keep an eye on NetSuite to see it it follows suit as a short setup, particularly if the broad market weakens. On the daily chart, below, note the multi-month grinding rally since the spring is in danger of coming apart.

On the long side, strength in FB NFLX PCLN is enticing. Also keep an eye on inter-market plays such as GDXJ JO for resurgent strength.

Drop me your top tickers overnight.

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PLEASE CLICK HERE FOR OUR INTEREST LIST, DISCUSSED AT THE TOP OF TONIGHT’S VIDEO

If you enjoy my blog posts and videos, then I would encourage you to please click on this 12631 hyperlink for more details about joining our great team of traders at a very reasonable price. 12631 is a trading service which @RaginCajun and I direct here at iBankCoin.

Enjoy tonight’s video, and enjoy your evening. 

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I scaled half of my triple-levered Russia short (via long RUSS) inside 12631 earlier today.

I know there is headline risk to my short here. But the potential for a wipeout or outright crash in Russia is still very much there according to the technicals. Furthermore, I am not sure sentiment is aligned with a bottom, either, as plenty of contrarians seem wiling to go long Russia here rather than short.

A corollary to the Russia/Ukraine situation is that we are seeing some softs like CORN WEAT start to come alive. Also, suddenly, JO is bull-flagging and SGG is putting in a bullish engulfing candle today.

Not a bad day for my natural gas long, either.

More on this after the bell on my video market recap.