Small Town Throwdown: Morning Version

Small and micro-cap stocks, via the IWM IWC respective ETF’s, are leading us lower this morning. Although AAPL is green, the Nasdaq is also a notable laggard as capital seems to be leaving the momentum parts of the market.

YHOO Is grinding higher into the BABA IPO, while AVNR is the healthcare/biotech slingshot of the day.

I have a few shorts on which are grinding lower, inside 12631, with AMZN being the notable breakdown candidate of the group.

If the morning dip-buyers fail to hold a move I will consider pressing.

What are you checking out this morning?

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.

 o reinforce the thesis of a new, multi-year uptrend in rates, despite the bond market rallying (and thus rates falling) for much of 2014 until recently, again consider the TNX – CBOE 10-Year Treasury Yield Index. As you know, bond rates and prices move inversely. So, a bullish setup in the following chart would imply a bearish one for bond prices. 

In last weekend’s Strategy Session, we looked at the falling wedge pattern (light blue lines), which developed after the initial inverse head and shoulders bottom (purple lines) dating back to 2011. That bottom remains confirmed. And last week’s impressive spike in rates could easily see them spiking higher yet in the next two weeks up to the upper weekly chart Bollinger Band (yellow arrows).

Some sectors which could easily benefit from the higher rates are…

Please click here to continue reading

Here are some actionable short ideas on this list, especially if the market sees another day of weakness.

Courtesy of The PPT algorithm, here are some very aggressive ideas for short trades headed into Friday If you are not comfortable shorting (especially in a bull market), there is nothing wrong with taking a pass. Keep those cover-stops in place.

Nonetheless, a good chunk of readers are always looking for short ideas.

Members of The PPT can click here to view and save this “Titanic” Screen, as I named it when I created it a few years back. The screen isolates stocks vulnerable to further weakness.

Please click on image to enlarge 

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Let’s go with AAL as a short setup on weakness, particularly if these overnight weakness in the futures market tonight carries over into the cash session Monday. Note the vulnerable technicals on the daily chart, below.

And on the long side, I continue to watch JMBA base tightly in an uptrend. If the market stages another sharp upside reversal my eyes are on this one.

Drop me your top tickers overnight.

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Much like the small caps, the micro-cap index (pictured below on the daily timeframe) has been diverging from the senior averages for a while now.

Feel free to drop your analysis of whether you think they break higher and negate the potential topping pattern, or instead if the bears can finally seal the deal.

Given that Friday’s sell-off negated Thursday’s promising rally, I am still inclined to say they break down.

Where do the micro-caps fall in the market’s food chain gong forward?

[Members: My latest Weekly Strategy Session has been published]

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The Drop (2014) is the late-James Gandolfini’s final film.

At times, he does remind us of Tony Soprano, with his trademark facial expressions and hand gestures. But clearly his character here, as “Cousin Marv,” is a much different type of criminal, ultimately a sheep compared to the lion that Tony was. Still, Gandolfini’s talent shines through, with his ability to steal scene after scene in full display.

I saw it earlier today, and highly recommend that you see it. Tom Hardy, Noomi Rapace, John Ortiz, and Matthias Schoenaerts also turn in memorable performances in this gritty drama with excellent character development.

via imdb

Bob Saginowski finds himself at the center of a robbery gone awry and entwined in an investigation that digs deep into the neighborhood’s past where friends, families, and foes all work together to make a living – no matter the cost.