Looking at Some Hot Action

_____________________

Although the senior indices have been flopping around quite a bit this morning with all sorts of headlines out of Europe, I am seeing improved action in many individual stocks. Quite a few names that have shown relative strength over the past few months, such as ALGT CSR EDU (long in 12631 service) FIRE QSII have all been permitted to break out to multi-month or even all-time highs. Moreover, the action in traditional market leaders like AAPL and BIDU is encouraging, as both stocks have quality daily chart setups. Generally speaking, the technology sector looks to be leading here, which is also a positive sign.

On the whole, though, the bulls still have their work cut out for them. The S&P 500 is currently coming to terms with a flattening-out 20 day moving average, on top of digesting a steady stream of news out of Europe. With the back and forth slugfest between bulls and bears over the past five weeks, you would expect there to be plenty of overhead supply even if the bulls continue to make strides. Hence, I am staying with my strategy of methodically legging back into this market, so long as the action keeps heating up.

 

Comments »

_______________________

With the action in the futures market the past two nights especially, but overall over the past few weeks, you would be better served ignoring them, unless you actually trade futures. On several occasions, the “this market feels crashy” crowd has been pretty certain that risk is decidedly off overnight with Europe selling off hard, only to see the market open either up or flat the next day. If you swing trade equities, forget about the bucket shops and focus on the cash market. You will save emotional capital, which is precious now more than ever given the high strung nature of just about everyone involved in these types of volatile markets.

 

Comments »

_________________________

I mentioned earlier today that the airlines were squeezing higher, as the transportation stocks as a whole showed strength in absolute terms as well as relative to the rest of the market. The shippers and water transportation stocks have been obliterated over the past twenty months or so, but now we are starting to see some setups emerge there.

Keep in mind that the shippers have been left for dead, with quite a few of them losing 80% or more of their value after the initial post-2008 crash rally. So, psychologically, these things could easily double or triple before many would actually take them seriously again. All of this depends on how the broad market acts in the coming days and weeks, but keep these on watch.

_________________________

_________________________

_________________________

_________________________

_________________________

_________________________

Comments »

Direct Video Link Click Here

 

Comments »

________________

…and yet there many encouraging things about this market despite the whipsaws with news across the pond. The trannies and semis finally caught a strong bid, and if the shippers are truly bottoming here it will be a tell that, hey, at least the world is not ending. As you know, the shippers have been down 80-90% across the board over the past few years, demolishing value investors’ capital with each endless leg lower. Now, though, they are suddenly looking sharp. GNK is on a monster run today, and DRYS DSX EGLE all look well set up, just to name a few. Keep them on watch, despite the headlines out of Europe.

See Also: Genco is so bad it’s good

________________

________________

Comments »

_______________

Laugh all you want, but the major airlines and the regionals are dominating The PPT scores of the highest ranked industries today. This truly is a great feature of the service that I use every single day. Along with majors like LCC and DAL, a regional like ALGT is very impressive not just today, but especially when viewed through the lens of the overall daily chart action.

You always have to pay attention to relative strength, and here it is.

_______________

Comments »