Too much will be made of today’s 123 point rally in the DJIA. I thought it was more significant that the SPY came in and tested support twice and finished at the highs of the day. The SPY is still in the 200 day/104 range so not much has changed but today’s rally was encouraging. A .84% one day rally in the SPY does not a bottom make so continue to watch the 104 level.


On the plus side DO & RIG (drillers which have been weighing down the market) look like they may have put in some capitulation volume today. However on the negative side AAPL closed below the 50 day MA, and the 200 day MA in AMZN provided no support but acted like a lid when tested on the up side.

I still think we have a real shot at testing SPY 100 so be nimble and don’t over stay your welcome in any trade. Until we break this range SPY 200 day MA/104 range the pickings will be a little thin.

The following ideas maybe actionable tomorrow, be aware of the petroleum #’s at 10:30 and the beige book at 2:00.

ads 64.26 reversal/support buy on 150 day MA

alb 37.64 reversal/support buy on 200 day MA

bpi 19.15 reversal/support buy on 150 day MA

cree 56.59 reversal/support buy on 200 day MA

de 53.12 reversal/support buy on 200 day MA

dhr 74.09 reversal/support buy on 200 day MA

luv 11.09 reversal/support buy on 200 day MA

sanm 12.19 reversal/support buy on 200 day MA

x 40 short

bvn 38 long