The market opened weak this morning bring the SPY down as low as 119.12 and effectively testing the 20 day MA before President Obama once again gave a speech saving the market and humanity. SPY closed the day at the highs just .50 shy of the 2010 highs, watch SPY 121.57.


Homebuilders (XHB), real estate (URE) and regional banks (KRE) lead the day all up 3% with pharma(PPH), healthcare (XLV) and silver (SLV) among the weakest groups.

The market is still well bid and is respecting technical’s go through your charts and see how many names bounced off of or stopped at important moving averages. In this environment I can’t stress enough how important these levels are.

For informational purposes small caps (IWM),real estate ( IYR), regional banks( KRE), mid caps (MDY), NASDAQ (QQQQ) ,retail(RTH), home builders ( XHB) and consumer discretionary( XLY), all put in new 2010 highs today.

I am not sure what to make of tomorrow. We have a FOMC announcement and GDP next week so I don’t know if we are going to get one last flurry of activity before things go quiet or if folks are just going to pack it in early and enjoy the weather. Either way I am still leaning to the bullish side until we break the 20 day MA on SPY with some authority.

The following ideas may be actionable tomorrow but don’t press especially as the day goes on, I think things will be pretty quiet in the afternoon.

a 36.5 long

apa 109 long

atw 38 long

hmin 35.5 long

xlu 30.5 long

asia 30 long

biib 51.14 reversal/support buy on 200 day MA

ilmn 36 reversal/support buy on 150 &200 day MA

mee 40.52 reversal/support buy on 150 day MA