Fits and Starts

Small caps are seeing a bit of a fade off the morning pop as I write this, though it is nothing too dramatic and, moreover, we have become accustomed to seeing these quick shakes before buyers emerge into the afternoon.

Still, the fade intensifies keep an eye on Google as a short side, seen on the first daily chart below threatening to lose recent support. Under $538 would have my interest on the short side.

On the long side, precious metals and miners are expectedly pausing here, but may offer a good long entry later this week.

Note premier silver miner Silver Wheaton’s monthly chart, where prior resistance dating back to 2007 is looking to become durable support.

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With @RaginCajun and I both having lived in New Orleans and come in contact with the “Hey, brah” continent from the Kenner and Chalmette areas, consider this post paying homage to those fine fellows.

Nordstrom continues to hold its earnings gap higher exceptionally well, one of the better retail charts out there that I see. Note the weekly chart, high and tight bull flag consolidation. Watch for a move over $69.50 to get another leg higher going.

And, speaking of holding gaps, crude oil continues to push higher yet. More on this later.

In addition, I may take another stab at TSLA on the long side if it can hold over $213 today.

Also keep an eye on GTAT VECO for short squeezes.

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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. 

 Crude oil and natural gas have stolen the commodity show of late, with crude’s multi-year breakout seen on the weekly chart, above the light blue resistance trendline dating back to 2012.

The most wildly bullish way in which the breakout develops from here would be to see last week’s gap higher not get completely filled. $38.71 marked the lows from last Thursday for theUSO ETF. And the daily timeframe shows that holding that gap would give bulls a bullish “breakaway gap” higher which implies much higher prices to come and, in effect, the chase would be on.

Another alternative would be to see a “partial” gap-fill, with price breaking Thursday’s lows but finding strong support above Wednesday’s highs. This, too, would bode well for crude bulls going forward.

Also note that a complete gap-fill, in and of itself, would not be inherently bearish for crude. However, given who many false breakouts we have seen from crude in recent years, the bulls have an excellent opportunity for a breakaway gap and, essentially, the “real deal.” 

Natural gas, despite a sharp shakeout early last week, finished strongly and is still on watch for a major weekly chart breakout into the $30’s, using the UNG ETF. At this point, a move over $27 likely ushers in another surge in upside momentum.

After a riveting rally in the winter, the soft commodities have been correcting or consolidating for most of the spring months. 

With coffee now trying to find support, I am on watch for all of the soft commodity ETN’s, especially CORN JO SGG WEAT to stage upside reversals into July, especially given how steep the downtrends are for corn, sugar, and wheat, while coffee attempts to stabilize.

A protective stop-loss below recent lows for any longs is suggested in case a deeper pullback ensues. 

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On this Father’s Day, I am going to re-recommend the great father/son tale told in Road to Perdition (2002), one of those rare films this century which actually lives up to the inevitable hype created by its all-star cast. At the same time, it is interesting that this film is actually one of the more under-watched films, considering the mega stars it features.

The superb soundtrack, cinematography, and attention to historical detail all add to the greatness of the acting and writing.

Watch it, or re-watch it.

via Netflix:

Hit man Michael Sullivan (Tom Hanks), known in his 1930s Chicago world as The Angel of Death, is on the run after his wife (Jennifer Jason Leigh) and son (Liam Aiken) are murdered. With his surviving son (Tyler Hoechlin) in tow, Michael sets out to exact brutal vengeance. Complicating matters in this crime actioner are a reporter (Jude Law), Al Capone’s enforcer (Stanley Tucci) and other shady characters.

Direct Vimeo Link Click Here

On the back of the OPEN buyout, a subtle takeover target on the internet may very well be WBMD, where we can self-diagnose our ailments.

The weekly chart shows a base breakout attempt, with price coming up the “right side” of it. The stock is also very heavily-shorted and ripe for a squeeze higher.

Also keep in mind, regardless of your politics, that we have a major overhaul in healthcare which will likely lead to many people taking some matters into their own hands with this site.

$50 looks to be the next level to clear.

What say you? Who are the likely buyers?

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