Pleasantly Sending Thousands of Confederate Soldiers Into Another Battle

I just went long a starter position in TWTR again inside 12631, at $32.66, with a stop-loss under $31.

I will only add to it on strength, and am playing for continuation of the recent snapback rally after the initial surge and subsequent retracement for what looks to be a higher low.

This is still a badly-damaged chart, which means staying agile and disciplined are paramount to aligning a favorable risk/reward ratio to the trade. In other words, playing for a nice, quick pop while avoiding a big drawdown is the name of the game.

Note the daily chart Bollinger Bands pinched in considerably, below, presaging a large directional move is imminent.

I still view the 50-day moving average, above, as a logical target.

____________________________________________________________________________

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.

________________________________________________________

So far, so good on the natural gas trade which I went long yesterday, roughly around the same time I cut my coffee long for a loss.

In addition to natty, crude oil has my interest on the long side. I want to see the USO ETF, seen below on the daily chart, turn back above $38 up and out from the highlighted bull flag (purple lines). You can see the light blue lines denoting an ascending triangle from which price broke and retraced. UCO is a levered long ETF I would consider.

Also recall the super-spike in oil at the end of the last bull market, a classic late-stage mover in its own right.

________________________________________________________

On the long side, notable names like AAPL F, as well strength in the large banks, are galvanizing bulls this morning after an opening move lower.

However, the stubbornly weak small caps remain an issue, with the IWM ETF back near its 200-day moving average.

In addition, the solar sector is suspect. On the sector ETF daily chart, below, note the recent falling channel (light blue lines) breakout is in danger of rolling back over after testing the declining 50-day moving average.

Overall, we still have a mixed tape with a slow, choppy summer feel to it.

__________________________________________________

Based on the daily charts, below, the Italian energy firm E looks to be a long idea on any further strength, while Luxembourg telco I is a short idea, breaking down from a consolidation in a corrective pattern.

_______________________________________________________

_______________________________________________________

For you night owls out there, consider the weekly chart for the natural gas ETF, a commodity I went long on Monday.

You can see prior, well-defined resistance now turning into support.

What say you? Natty rally into summer? Fake-out?

Speak your mind, night owls.

_________________________________________