Considering the selloff Thursday I thought the market held up well Friday especially in light of the situation in Korea. The dollar was weaker and that lead to some buying in commodities. Copper (JJC), basic materials (UYM) and silver (SLV) were among the stronger sectors. Regional banks (KRE) brokers (IAI) and healthcare (XLV) were among the weakest.


The SPY is still pinned between the 2010 high (118.10) put in Thursday and the 20 day MA (115.20) I expect choppy action until that gets resolved. My best guess is that we are going to consolidate below the highs for a couple of sessions the 20 day MA will catch up to us and then we will probably move higher. Stay tuned.

The dollar and bond auctions really moved the market last week so they will continue to be on my radar screen this week. There is a 3 month and 6 month bill auction tomorrow at 11:30 let’s keep an eye on them.

I have included some breakout/down and a few reversal/support buys. The choppy action I expect lends itself to buying pullbacks and fading breakouts/downs so keep that in mind. And as always never catch a falling knife and use reasonable stops.

adsk 30 long

amx 50 long

vmw 55 long

wlt 94 long

amzn 137 long

mon 70 short

ntes 36 short

do 83 short

nfx 46.66 reversal/support buy on 150 day MA

rax 17.39 reversal/support buy on 200 day MA

rht 27.86 reversal/support buy on 150 day MA

oih 115.24 reversal/support buy on 200 day MA