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Consistent with my bullish bank thesis, here are two of the better-looking South American banks that have shown exceptional relative strength compared to basically all other financials over the past several months.
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Much like the dorky girl in high school with a not-so-secret crush on you, the real estate sector will simply not go away. The above daily chart for the ETF of the sector, IYR, tells us that $63 has been a huge brick wall not only this year, but over the past few years as well. Despite that tough resistance, the chart has failed to break down. We recently saw an orderly falling wedge towards the 20 and 50 day moving average convergence, followed by a strong move higher today out of said wedge. GIven the inability of the bears to complete the breakdown, coupled with the seemingly strong underlying bid, I expect the next test of $63 to result in a successful breach. Even from now until then, though, there is quite a good opportunity for longs, particularly in the following REITs.
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There will always be a reason to doubt the validity of any move in the stock market. Today, for example, you might find a few resident experts on your Twitter stream talking about how this morning’s gap higher just does not feel right, or that a few certain garbage stocks that they are keying off of are not holding some loser breakout. If you look hard enough, there will always be loose evidence to support whichever thesis you choose to concoct, given the amount of issues that trade. All of this is in addition to the absolutely brilliant “macro traders,” who have every reason, in their own mind, to view the European and U.S. debt issues as the proximate cause for any bearish price action in equities.
While there are many ways to be a successful trader, one of the best ways to lose money in the stock market is to commingle styles. I am a technical swing trader, with a focus on risk management not allowing noise outside of my style to distract me. What’s your style?
I am pretty busy inside the 12631 Chat Room today. Come check us out sometime. We have a positive atmosphere with a group of enthusiastic and successful traders who are willing and eager to help you improve.
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The resilience of the biotechnology stocks has been highly impressive. As you can see on the first chart below of the IBB, ETF for biotechs, they continue to knock on the door at $110 for a major breakout. Note that while many areas of the market saw deep corrections, the biotechs quickly recovered right to yearly highs. That type of action tells me that this is a sector where fund managers are looking to quickly allocate capital when risk appetite materializes, which means I want to play close attention to the industry.
Below, you will find my best individual biotech ideas. I am currently long QCOR.
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I like what I see and I am making a bunch of swing trades. My business associate and co-12631 leader RaginCajun is absolutely crushing a bunch of intraday trades too inside our state of the art chat room called the “Pelican Room,” in honor of R.W. Pelican. Come check us out.
Although I do not own any of them, check out the chemicals today. ROC is screaming out of a bull flag, and HUN PPO POL all look to be setting up behind the ROC.
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