As we work into Monday afternoon’s trading session we have a market firmly in favor of the bulls. Beneath the surface of a rather benign tape we have productive action in banking, miners, and Apple. Even hated Facebook has made an interesting intra-day reversal and is firmly in green territory. Not the entire energy space, but refiners participating in the upside as well.
TLT notching higher has been a discussion point today, but considering the violent move lower last week it could be interpreted as a relief as opposed to genuine support. On the weekly chart, a green close in TLT would signal an opportunity for me to buy for a swing. It will be interesting to see how TLT plays out this week as it now has overhead resistance to work though should it work higher.
US Dollar also looks poise on the weekly chart for a bounce. It also faces recent supply and resistance should it trod higher.
YELP is murdering longs. Being in a six percent loser on a benign day where other sectors are rocking can be damaging to ones psyche. I implore you to have a solid plan in place should you choose to play this name and others like it.
Overall it appears money is rotating into miners and banks. I initiated a position in Gold man Slacks, aka your congressman’s bank, to partake in a potential financial equity inflow. It helped my man Ragin’ Cajun highlighted the name over the weekend. I also bought SNY via Scotty Bleier’s commentary on the healthcare sector. iBC FTW.
I started a small (~2%) position in VHC. I’m willing to double down sub $22.75 should I like the price action. I’m using my second setup, the lower probability one (see last post), to participate in this story.
I’ve increased my equity stake with today’s purchases to 35%. The rest remains cash. I will very patiently put the rest to work should we see price action continuing to favor the bulls.
TPX and EXPE make up the rest of my book.
Top pick: EXPE
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