Chips with Dips

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MARKET WRAP UP 01/13/11

Despite closing off of the worst levels of session, we had another trading session of blasé action. With the S&P 500 finishing down 0.17% to 1283, you got the sense that the market was holding its collective breath in front of INTC and JPM earnings. At the time of this writing, I see that INTC is higher in moonlight trading. Keep in mind that INTC, the chipmaker bellwether, has seen its post-earnings bounces faded rather aggressively over the past several quarters. With that said, the broad market is still technically sound, even if the underlying enthusiasm and energy are not particularly impressive. Attempting to call a major top has not only been a waste of time and capital, but it also had been uncorroborated with the charts of the leading indices and sectors, seen below.

Indeed, no trend lasts forever, but when too many market players acknowledge that we are extended and ripe for a buyable dip, the net result is a daily drip higher that is starting to frustrate just about everyone watching the tape which, oh by the way, is exactly Mr. Market’s modus operandi.

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Plenty of excellent sites out there include more macro commentary in their links, namely Downtown Josh Brown and Abnormal Returns. I thought I’d share a “Traders Only” collection. Here are the traders that I have been reading today (click on links):

• @TraderStewie gives four stocks to watch, going forward.
• “The Goat,” @gtotoy with his excellent daily read on the $SPY
• Maribeth’s actionable daily watchlist and charts
• Position Trader’s on how to trade gap ups.
• Vic’s intraday market stats
• Vj’s daily, original analysis. Check him out.
• Finally, John Welsh is the definition of value-added with his DVD series.

There are plenty of other key sources that I check everyday, so be sure to look on the right hand side of your screen for my “Recommended Links.”

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At the conclusion of our second full month, the 12631 Trading Group inside The PPT is growing at breakneck speed. By far, the most distinguishing aspect of our community continues to be our core members rapidly developing into excellent traders. The educational components of the combined 467 posts to date (including videos, charts, etc.) that RaginCajun and I have made are paying dividends and having a material impact on our members’ market knowledge and success. While many other premium services would become nervous with this development, fearing a mass Exodus of those who wish to do it all by themselves, RaginCajun and I both welcome our members’ success and also view it as a sure sign that 12631 has truly arrived.

Much like a winning Division 1 college football program steeped in tradition, we do not cringe at the thought of going through a rebuilding process in the event our top members move on. Instead, we will simply “reload” and continue to build a contagiously winning atmosphere that extrapolates on The PPT algorithm. Of course, with over 230 active subscribers to date, we suspect that even our most improved and talented traders will not, in fact, move on. Rather, we believe they truly value the work ethic, knowledge, and discipline for which the 12631 team stands.

As a reminder, 12631 is only open to members of The PPT. So, be sure to click here for details and decide if being on our winning team is right for you (See my video at the bottom of The PPT informational page, guiding you through the inner workings of The PPT service).

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Plenty of excellent sites out there include more macro commentary in their links, namely Downtown Josh Brown and Abnormal Returns. I thought I’d share a “Traders Only” collection. Here are the traders that I have been reading today (click on links):

• “The Goat,” @gtotoy with his excellent daily read on the $SPY
• The @HCPG crew always on their game
• Joe’s rock solid morning overview
• Maribeth’s actionable daily watchlist and charts
• Position Trader’s chart of the day and other analysis
• Vic’s intraday market stats
• Vj is always giving original analysis. Check him out.

There are plenty of other key sources that I check everyday, so be sure to look on the right hand side of your screen for my “Recommended Links.”

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MARKET WRAP UP 01/11/11

With the date being 1/11/11, it is only appropriate that many market players perceive the price action as being too bizarre to trade aggressively. After seeing some intraday volatility, the bulls held on to close the S&P 500 up 0.37% to 1274. Indeed, while the pockets of momentum are seemingly becoming tighter, the broad market is holding up astonishingly well. Seeing as the market will usually do that which frustrates the greatest amount of participants, it only makes sense that we drip higher on a daily basis, as most everyone freely admits that we are extended and due for a mild correction.

While an imminent correction seems like the obvious scenario, some areas of the market have already pulled back in the past week to what should be strong support zones. Moreover, they moved off of these key areas today, namely the emerging markets and coal sector. Thus, the best strategy continues to be one of trading the best individual setups, while respecting the short-term key resistance and support zones on the S&P, at 1276 and 1262 respectively.

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[youtube:http://www.youtube.com/watch?v=nbZEkFLXh9Y 550 412]

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Enough whining by traders on the Twitter stream about supposedly how manipulated this market is, which is basically just a thinly disguised veil for how wrong many have been in fighting this tape the past few months anyway.

Instead, a better approach is to tune out the noise and pay attention to this broad market range that we have been trading in since the beginning of 2011. Be on watch for a break in either direction.

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