In-N-Out the Rest of the Week

I moved to 100% cash here, in large part due to the fact that I will be in and out the rest of this week.

It is too early for me to get overly bearish based today’s action, though many of the high-flying marquee named did not see dip-buyers saving the day this time. We may be settling into a summer grind-fest, with small caps finding more supply at recent highs.

Either way, I am staying super light for at least another week, taking some losses today and booking a day-trade win in UVXY and closing out my swing win in SWC long.

See you after the bell for my recap.

I will have more to say about this throughout the week, but this check-back/throwback bounce in Treasuries today is going to be as big as any test in 2014 for bond bulls.

Note the breakdown of well-defined trend support on the daily chart, below. Another rollover and move towards $110 would see me taking another shot on the short side.

_________________________________________________________

Many charts out there in tech land look like N or P, insofar as staging grinding, multi-month rallies after suffering technical damage earlier this year.

You can plainly see both stocks, below, on their daily charts having pushed higher for a while now despite being unable to negate the damage sustained earlier this year entirely. Similar comments apply to AMZN YELP, for example.

Given that a new earning season is upon us, I suspect the market’s reactions to the looming reports will give us true insight as to whether these stocks are now shorts, playing for rollovers from assorted lower highs, or if we will get that melt-up into the end of summer.

For now, these charts are neutral at best with the easy money off the lows having likely already been made.

_____________________________________________________

_____________________________________________________

The ag/fertilizer space is all over the place, with the soft commodities themselves getting beaten-up of late. However, select soft commodity-related stocks have been on a tear, namely Archer Daniels Midland today. You can see the impressive weekly chart base breakout, below.

Also keep an eye MON POT to see if they follow suit higher.

_____________________________________________________

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.

________________________________________________________

Although it has not seemed to matter much over the course of this fierce, multi-year bull run, overhead supply sooner or latter begins to matter in a major way. Whether that is currently the case remains to be seen. But at least bears can hang their hats on the resistance in names like DDD, a chart we observed last week for its potential overhead supply last week.

On the updated daily chart, note the major top still in play, as well as the nasty fade at overhead supply (horizontal light blue line) and downside follow-through, spilling over into today’s session. The issue now becomes whether dip-buyers step in again to trap bears, again, or if the overhead supply turns into a meaningful brick wall which leads to another leg lower.

Other names to observe for this phenomenon: IWM YELP, among others.

______________________________________________________________