Today was much like yesterday, we had a rally in the morning which provided some action with last night’s alerts, and a selloff in the afternoon. SPW (62), anss(45), hig (26) and nmm (16) worked as target/resistance shorts while jec (40), slab(46.42) and cat(59) worked as breakouts.


Yesterday afternoons selloff got me thinking that we might be due for some consolidation and we got it. The SPY has traded in less than a $1 dollar range the last two days (112-112.97) and I think that is good. This rest is clearing up the charts and potentially setting up some nice breakouts.

As I was going through my charts tonight the dollar index really jumped out at me. It closed below the 20 day MA today for the first time since January 19th which essentially was the most recent high in the market. By January 21st the SPY was below the 20 day MA and on its way to a 9% pullback.

This certainly merits our attention and if the weak dollar/strong equity trade really comes back into vogue this could help lead us back up to those 2009 highs and beyond.

I will be watching the following levels in the dollar index 80.34 (20 day MA above) and 78.95 (50 day MA below).

I am expecting, almost hoping for a little more sideways action tomorrow. Again the alerts I have are mostly longs and I do not love them, this hasn’t been a great market for breakout/breakdowns. You may want to use these spots as targets on market/sector strength or as a level to fade the move on a reversal. As always use reasonable stops and know your levels.

orcl 25 long

genz 58 long

spw 62 long

rimm 72 long

anss 45 long

driv 28.15 long

hig 26 long

nmm 16 long

sbux 23.5 long

gmcr 90 long

anr 50 long

cnq 71 long

dvn 72 long

atpg 19 long

mtl 25 long

adsk 29 long

gww 105 long

podd 15.5 long

tii 18.5 long

ure 7 long

gpn 42.5 short