The full version of this report with daily stock picks and real-time email alerts is available here for $20 per month The Big Picture Good Morning, Traders. Judging by Thursday's bullish action one could have read between the lines and assumed the market was telling us Friday's unemployment report was going to be a non-factor. Well you know what happens when we assume.....! As always we will not concern ourselves with the why, but unemployment came in higher than expected which triggered a significant gap down in the market on the open. The selling didn't let up all day and intensified into the close. Now that our short recap is out of the way let's get into some charts. <img border=5 width= 550 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080609SPX.gif"> The S&P is now back below the 50ma, and with Friday's monster ugly red bar down the odds highly favor a test of the mid-Aril lows around 1324 noted on the chart above. There is another low just beneath 1324 at the end of March that could also come into play. The back to back wide ranged bars in the S&P is the biggest volatility we have seen since the market bottomed out with two consecutive wide bar days on 3/17 & 3/18. <img border=5 width= 550 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080609INDU.gif"> In looking at the chart of everybody's favorite laggard above, the Dow Jones, we clearly see support at the weekly uptrendline that would intersect somewhere near the 12,000 level. One run through the symbols in the Dow and it doesn't look pretty. <B>GE</B> and <B>C</B> broke down from tight ranged consolidations at the lows and <B>BAC</B> broke to new 52 week lows. Some of the better names that have held up recently are beginning to lose trend, as <B>CAT</B> and <B>JNJ</B> closed below their 50ma's on heavy volume. <img border=5 width= 550 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080609OSX.gif"> <img border=5 width= 550 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080609XOI.gif"> <img border=5 width= 550 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080609DJUSNS.gif" <img border=5 width= 550 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080609SOX.gif"> The reason why we believe that any pullback in the market will not lead to a new leg down is shown on weekly charts above, where we see bullish consolidations and leadership from oil stocks ($XOI) & ($OSX), as well as internets ($DJUSNS), and new found strength from semiconductors ($SOX). We feel that it will be tough for the market to enter a prolonged correction with so much divergence among key groups/sectors. Crude oil exploded to new highs due to the Euro laying the smack down and rallying about 3 cents versus the dollar over the past two sessions. Oil has been and will continue to be a favorite hedge against a weak dollar for the pros. We see precious metals stepping it up with <b>GLD</b> and <b>SLV</b> primed to head higher and possibly break the downtrend lines of their current consolidations. Watch yesterday's <i>ShadowTrader Video Weekly</I> for that key level in the Banking Index which could be a clue as to where this thing bottoms out. If that level gets tested and we see sellers all throwing in the towel at once on a big volume push at or near the $SPX and $INDU levels above, we would be looking to get aggressively long at that juncture in some strong names.
The full version of this report with daily stock picks and real-time email alerts is available here for $20 per month The Big Picture Good Morning, Traders. Day two of <a href="http://www.shadowtrader.net/glossary.html">top line divergence</a> as the Dow once again put in a green day while the S&P and Compq bled a bit. This is bearish to us in the near term and so far supports our theory that there should be another leg downward to test that 1325 area on the S&P. The more violent and greater volume move this is, the happier we will be as the ensuing snap back rally will be playable to the upside. There are a number of reasons why we feel this way. Lets check out the chart below first of the intraday S&P to see yesterday's pattern and what it should mean going forward. <img border=5 width= 559 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080611SPY.gif"> Above is an intraday SPY chart showing the last two days of action. The first thing that jumped out at us is the intraday trendline from yesterday. Note that its basically up on a gentle slope. This is not what we would expect on a double bottom in the S&P where sellers got rebuffed at Monday lows. The second factor is that its definitely a clear head and shoulders which is a bearish pattern. Now go below to the <i>Under the Hood</i> section and note the breadth ratio readings. 42.65 on the NYSE and 30.63 on the Nasdaq. These are very poor and show that the market was struggling hard to make any intraday up moves at all. Strength was extremely mixed as usual. At the very least we would have wanted to see these ratios close somewhere positive (over 50) but they did not. So what we glean from all this is that there must be new bulls initiating positions yesterday and shorts closing out positions, all of whom will be smacked with the overhead of the prior two days IF the S&P moves below these two day lows at the 1350 area. Look to get into a short-term short on momentum below that level with a stop over Tuesday's high or high of hourly breakdown bar. Don't overcomplicate this. When a market goes sideways or up very gradually it sucks people into it and that then creates overhead if the market moves lower. This is especially true coming into today where we know we have a minor support level at 1350. So watch this level carefully today. A good momentum break with all the sectors firing downwards together should take the S&P down about 30 points to that prior support of 1325. As we have been saying we will get aggressively long at this point on the theory that there will <i>not</i> be new 2008 lows in the market but rather that we feel the inverted head and shoulders in the weekly S&P will hold. Remember, the above scenario is only in play if the market moves below 1350 and can prove that it can hold the bulls off by closing an hourly bar below that level. Now, what to look for on the scenario playing out perfectly with a violent move lower. Here are some trade ideas that should be of use to you. In any situation like this, get long big beta market leaders that will provide the most bang for your buck when the ensuing violent snap back rally occurs... <img border=5 width= 559 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080611POT.gif"> Agriculture stocks have shown great relative strength over the past two weeks by breaking out to new highs while the broad market sells off. <B>POT</B> just broke out from a quick pause around 212 and pushed to new highs on better than average volume. One could establish a pullback entry on a test of the 212 breakout level with the 20ma catching up to lend support. <B>POT</B> has tremendous earnings growth of +100% over the past two quarters, as do most of the stocks within this group. <b>MOS</b>, <b>CF</b>, <b>AGU</b>, and <b>MON</b> are also showing very bullish patterns near the highs. <img border=5 width= 559 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080611RIMM.gif"> Since bottoming out in late January, <b>RIMM</b> has steadily marched higher, riding the 20ma to new highs. It's currently in pullback mode on lighter volume and is building support at 128.00 with a little help from the rising 50ma. <b>RIMM</b> has great earnings with three quarters in a row of +100% earnings and revenue growth. Look for a break of the downtrend line to get long. <img border=5 width= 559 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080611AAPL.gif"> For a stock that was "left for dead" in January, <b>AAPL</b> staged a monster comeback through April and May that stopped just 5% shy of the prior high before entering consolidation mode. Over the past few weeks we have see the action chop around in a flat base but so far so good. Not shown above is the daily chart where the 50ma has caught up to provide support around 172.00. Look for a heavy volume breakout above 190.00 to trigger the next leg up.
Futures popping +12.25 at time of this writing so this could throw a wrench in this whole scenario for today at least. If gap fills relatively quickly then we should hit target today. The full version of this report with daily trading ideas and real-time email alerts is available here for $20 per month The Big Picture <img border=5 width= 559 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080612SPY.gif"> Good Morning, Traders. As mentioned in yesterday's report, the weak price action over the past two sessions, the poor breadth ratio, and the gentle slope of the uptrendline on the 15-minute chart above pointed to another leg down in the S&P. Our analysis proved to be dead on, as the $SPX never recovered from a sharp morning selloff and suffered further selling into the close. The ShadowTraderPro <i>Model Portfolio</i> established a short position Wednesday morning in <b>SPY</b> to capture the short term momentum to the downside, which closed in the money by 1.33 points. <img border=5 width= 559 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080612SPX.gif"> We felt that the two day consolidation in the $SPX was a very weak response to Friday's ugly, big bar selloff. The two consecutive doji's (circled in blue on the chart above) suggested further weakness to be resolved by another leg down to test support around 1325. The 1325 area is a prior swing low from 4/14 and 4/15 and is the target to cover our <b>SPY</b> short. <img border=5 width= 559 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080612SPXW.gif"> Looking at the weekly chart above we have listed a few key points clustered together near 1320 that should provide a great deal of support in addition to the prior swing low at 1325. Points 1 & 3 on the weekly chart of the $SPX above lay on the primary downtrend line of the selloff. Point 1 references the break of the downtrend line to upside in mid-April that confirmed the rally. This trendline that was once resistance has now become support at point 3, where the $SPX meets the backside of the trendline around 1317. Point 2 is the 200ma, which is the rising blue line that is currently sitting at 1317. Point LS is the left shoulder of the inverted head and shoulders pattern that is setting up. The head is the undercut in March, and $SPX is currently working on the right shoulder which should find support in between 1310-1320. The selloff to the 1325 in the $SPX is key to setting charts up on the long side for a decent run. We are monitoring stocks with relative strength (see yesterday's report) for potential buy entries late this week or early next week.
The full version of this report with daily trading ideas and real-time email alerts is available here for $20 per month Good Morning, Traders. We've basically been talking about the same setup for two days now, so we're going to keep it a bit shorter and sweeter today. For those of you who may have just begun your subscription to this report, we've posted the last two days of <i>Focus Reports</i> to our archives section so that you can get up to speed <a href="http://www.shadowtrader.net/focusListArchive.html">here</a>. <img border=5 width= 559 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080613SPX2.gif"> We'll revisit the weekly chart of the S&P one more time. You can think of this as part 3 of a 3 part series that started on Tuesday. This chart shows the reversal scenario that we are looking at to cover shorts and establish long positions. One of the simplest reasons that people buy and sell stocks at the wrong times is that they do not look at longer term charts (or some not at any charts at all) to see where support or resistance is in the longer term. That chart is a weekly, and you can see from just a quick perusal of it that the left shoulder area of the inverted head and shoulders found support at this 1325 area for months. Once we broke lower to form the "head" the area was then resistance for about a month solid whenever we bounced into that area. So............... If we fall right into this area (which we should), do you foresee a panic so large that it blows through the lows of this area and closes beneath them or do you foresee the sellers running out of bullets after the SPX has fallen over 100 points to get there? We foresee the latter and feel that the snapback from this area will be playable. Important stuff to think about.......... Markets often "overshoot" key support areas in a mass of panic selling. Thats a good thing. When you hear Brad in the <i>ShadowTrader Squawkbox</i> say "NYSE breadth 15 to 1 negative, A/D line -2200, Core Sector List 16 to 0 negative with all sectors down more than 2%", you should be thinking sellers are going to run out of bullets soon. Why is this? Because the action we are describing which may happen today is happening at the <b>END</b> of a move when the market has already been down 7-10% off of recent swing highs and is coming into an obvious level of technical support. That is not professional, institutional selling at the end of a move. Secondly it may be a retest of whatever low is put in first as a double bottom before the short covering begins. Remember that because its scary. If you do play off of these lows, remember to play within your size limits and don't bet the farm. Taking small size at lows is cool but being able to add to those at either 15minute or hourly reversals is even cooler! The main key is how violent the selling gets if at all. If its really nasty then to just put in a fifteen minute turn is a feat for bulls. Time that with some improvement in the breadth and watch your NYSE ticks as well. I've found this to be valuable as of late. Watch tick readings that are set on 15 minute charts while you are watching broad market or ES futures on same timeframe. When you start to see that the market is going lower but those extremes to the downside on the tick chart are not going as low on the fifteen minute bars, then you have got something brewing. We will send out an alert to all subscribers if markets touch 1325 that will either cover SPY completely or place a very tight protective stop. We will not be covering partial position on this one at all, but rather focusing our energy on the long side. If we get the scenario we are looking for then don't be surprised to see a few longs shoot out of our mailbox in quick succession. More than likely an alert to get long the same SPY you just covered short. The market's reaction to the Consumer Price Index at 8:30am EST will be very key as to whether or not this scenario plays out. Big gap down on that number and you can pretty much bet on it as the S&P would open close to that 1325 right then. On a closing note, Apple (AAPL) tanked yesterday and closed below the 50ma daily. We are reversing our earlier bullish position on the stock which we mentioned here earlier in the week. RIMM and MA continue to look gorgeous and are probably where we would be looking to get the big beta bang for our buck (say that 3x fast) in a swift leg upwards.
This week's video is posted here. Any comments as to whether or not we ever make it to that 1325 support area in SPX would be greatly appreciated. One could easily make the argument either way at this point technically. The video can be viewed by clicking here. Anyone on the video list at our site will be eligible for a free week of our daily newsletter ($20 per month) from 7/23 - 7/27. Click on free videos at shadowtrader.net
The full version of this report with daily trading ideas and real-time email alerts is available here for $20 per month Good Morning, Traders. The market responded to bearish CPI numbers by gapping up higher on Friday morning, however, there was no follow through, as the market drifted lower into the 2:30 reversal period. Up until that point, Friday's action was following last weeks blue print of early strength followed by afternoon weakness. Alhough the $SPX closed strong, most of the up action came in the final 15-minutes of trading. Its also worthy to note that Friday's strong gains were not confirmed by volume , as the NYSE fell off Thursday's pace by 16%. The $SPX is seems to be acting oversold although oddly enough a bit ahead of where we feel the obvious support is at the 1325 area. <img border=5 width= 559 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080616SPX.gif"> Looking at the $SPX above, there may be a bounce to the 1375-1385 area. The prior swing lows of late April and early March offer resistance near 1375. We see the declining 20 and 50ma's as significant resistance and ideal low risk entry points for short sellers to establish positions on strength in an overall bearish market. So far our scenario for the $SPX to clip the 1325 level and reverse has not played out, though it's ideal for long entries from a risk/reward standpoint. Our thought process is/was.....long entries coinciding with the $SPX somehwere near 1325-1335 had about 50-60 S&P points to run before hitting resistance (very attractive). As of Friday's close (1360), long entries have about 15-25 points before hitting resistance (ugggh). Sometimes you have to ask yourself.....is the juice worth the squeeze? The Nasdaq 100 managed to close above the 200ma and though it is the "index du jour" it's riding the strength of a few impressive charts that have ripped some 60 to 80% off the lows of '08. Whether or not this index can push higher will depend on the action of the four horsemen, of which, RIMM looks to be the strongest pattern. <img border=5 width= 559 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080616RIMM.gif"> RIMM is holding up like a champ at support of the 50ma and the prior lows. This is what strong stocks do in weak markets. The break of the downtrend line should be a valid buy entry, provided the volume is strong and the market is as well. <img border=5 width= 559 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080616AAPL.gif"> Anyone daytrading AAPL the past few days knows the wild ride its been on. If AAPL can push higher from Friday's huge reversal and reclaim the 50ma it would be very bullish action. Further weakness in AAPL would be bad news for tech. <img border=5 width= 559 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080616GOOG.gif"> GOOG is holding up in a symmetrical triagle pattern, which is defined by the lower highs and lower lows at every touch of the converging trendlines. Nothing to do right now, as the pattern suggest further chop but the action should be reviewed daily. <img border=5 width= 559 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080616BIDU.gif"> Note the failures at support in BIDU above, which is just the opposite of the action in RIMM. Look for BIDU to hold this tight range at the 200ma and push higher into the 50ma. A buy entry is BIDU would be over the downtrend line of the pullback. As you can see from the charts above, RIMM is the only setup in position to trigger a valid entry on a market rally. If these charts fail to hold support, the lights could go out fairly quickly on the Nasdaq. As for the $SPX, banking stocks have come into support on the monthly charts which could offer some relief. Oil stocks remain the place to be regardless of market direction, as they refuse to fall apart. Most of these leading oil stocks though are very extended and could use 1-2 months of corrective action to set up shop again. As discussed in the <i>ShadowTrader Video Weekly</i> last night, the outlook is a bit cloudy here. Divergence abounds.
The full version of this report with daily trading ideas and real-time email alerts is available here for $20 per month The Big Picture Good Morning, Traders. Over the past two days we have seen classic "running the shorts" price action, leading us to stop out after fighting with the shorts like they were sailfish. We are reminded of a quote by Jesse Livermore, "There is only one side of the market and it is not the bull side or the bear side, but the right side.â We eventually had to say ok, some stocks are running so we jumped on the one we felt was the leader, <B>RIMM</B>. We told you last night that if the market was to push higher that <B>RIMM</B> would be the lead horse and we were right. There was very little quality to choose from among longs, so <B>RIMM</B> was easily the top choice on the downtrendline break on a pick up in volume. Though the Nasdaq 100 closed up 1%, scanning through the charts revealed very few bullish patterns, which made the purchase of <B>RIMM</B> a clear stand out. The lack of bullish setups on our scans leaves us with very little to get excited about here. Scanning setups nightly plays a pivotal role in confirming the action in the broad market. One could start with a top down analysis, scanning the broad market and major sectors and industry groups for perspective. A good checks and balances system would then be to do a bottom up scan, going through a thick list of stocks noting the relative strength and weakness. If the broad market charts are telling you we are headed higher, but you are unable to find bullish setups with ease this is a red flag....something is not right. So, is this the beginning of a bullish leg up in the market or just a short term bounce with more downside to come? Lets look at some of the evidence from the past few days. As we mentioned in the paragraph above the lack of bullish setups is a concern. The biggest gainers in the market yesterday came from stocks that have bounced hard off the lows after an ugly selloff. Yesterday's internals were nothing special with just a +466 a/d line in the Nasdaq at the highs, with very average breadth and breadth ratio readings. For the second straight session the volume came in lighter on both the NYSE and Nasdaq. Add this up and we see a short term bounce in the market giving way to another leg down. Lets take a look at some of the stocks leading the market to the downside. <img border=5 width= 559 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080617GE.gif"> Large caps are struggling. <b>GE </b> is showing a ton of relative weakness by ignoring the bounce in the broad market. Friday's bullish reversal bar off the lows failed to attract any buying attention at 52-week lows. <B>AIG</B> is showing the same kind of weakness at the lows, as is <B>PFE</B>, <B>MRK</B>, <B>BAC</B>, and <B>GM</B>....ShadowTrader's Dogs of the Dow. <img border=5 width= 559 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080617FXP.gif"> We also see weakness in Chinese stocks with heavy selling action in bear flag setup candidates <b>CHL</b> and <b>CTRP</b>. Their action is confirmed by the bull flag action setting up on the chart of the Ultrashort Xinhua China 25 ETF (<b>FXP</b>) above. This is the inverted chart of <b>FXI</b>, and it appears to be forming the right side of a cup and handle pattern after a few weeks of basing action at the lows. Look for further consolidation and a breakout to the upside to follow. <img border=5 width= 559 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080617IWM.gif"> Small cap stocks have enjoyed relative strength over the past few weeks, but that could be coming to an end judging by the daily chart of <b>IWM</b> (Russell 2K ETF) above. Note the head and shoulders topping pattern that is forming and the pick up in volume during the sharp decline. <b>IWM</b> has resistance from the 200ma and the high of the left shoulder above 74.00. Given yesterday's weak advance on dull internals do not be surprised if we revisit our <b>SPY</b> and <b>DIA</b> shorts. Stop out or no stop out, these charts still look like they could see another leg down, as we may have just been a tad too early with our entries. We listed a few transportation stocks on the short side in the <i>Bulls and Bears</i> section. The transportation index ($TRAN), has made a weak attempt to bounce after a very sharp selloff. On the long side, <B>GOOG</B> is shaping up for a possible buy entry and we remain long that needle in a haystack <b>RIMM</b>.
The full version of this report with daily stock picks and real-time email alerts is available here for $20 per month The Big Picture <img border=5 width= 559 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080619SPX.gif"> Good Morning, Traders. Gap down yesterday held and is making violation of last week's bottoming tail hammer lows possible which could trigger a large 'Larry Williams' type move to the downside. As we often discuss in the broadcast, the Larry Williams play is when bottoming tails get violated to the downside or topping tails get violated to the upside. On the weekly chart above, you can clearly see in the circled area last week's bar in the $SPX which is what we call a <i>bottoming tail</i>. This is a bullish formation which tells us that bears pushed price down to a certain area but by the time the bar closed, bulls managed to bring price up much higher and close to where the bar opened. Violations of these low areas act as a "shock" to bulls who all have stops there. If you note that on the weeklies this area is the first higher low put in on the most important index benchmark that there is out there, then its very important. Everyone (and their mother) is watching this area to see if it will hold. What we foresee happening in the near future is that the area gets undercut, the 1325 would come next and in a fit of panic that might get undercut as well, taking the $SPX down to about the 1318 which is the 200ma weekly support denoted by the blue line. At this point it will be very key to see how the market acts. If we see strong buying come in at lows, we are going to go out on a little limb here and say that these could be the lows of the year. That would cement in the inverse head and shoulders pattern on the weekly $SPX. The low of that 'head' is all the way down at 1256, so we don't see a test of that. Any test of that and there is no inverted head and shoulders pattern at all. It would then be considered a double bottom at first and would of course be in danger of going lower. But, as stated above, we don't foresee this scenario. The dynamics of the market right now just don't feel right for that type of setup to occur. Too much strength in commodity driven sectors and financials are extremely oversold and hanging out at multi year low support. We are near term bearish here and the recent weakness is making the case for this washout to occur soon. If it doesn't, we'll go back to buying stocks more aggressively. Note we said "washout", not another leg lower. Another leg lower would mean $SPX closing a couple of days under 1300 and showing no signs of life. Then and only then would we think that maybe a retest of March lows is happening. But again, more than likely a panic quick lunge down and then a close higher. Futures slightly negative as of this writing about 3 hours after Wednesday's close. The triple threat of Jobless Claims, Leading Indicators and the Philly Fed all before 10am today could be the catalyst.
Market extremely whippy here and sensitive to price of oil. Futures on S&P opening us up near yesterdays lows which could make for the push to the hallowed 1325 finally. So much whipsaw action here its hard to tell. Yesterday's deflation in oil stocks went right in to tech but crude futures are now trading back at yesterday's highs (!) in premarket, so not possible to tell right now if that dynamic continues. If tech doesn't get blasted today and yesterdays low in the Q's holds and closes in upper part of that range, there should be a long play there. **Newsletter free all next week to those signed up for our free videos on our site ** The full version of this report with daily stock picks and real-time email alerts is available here for $20 per month <h1>The Big Picture</h1> <img border=5 width= 559 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080620PCX.gif"> Good Morning, Traders. The energy sector came under heavy selling pressure at the highs yesterday, as some of the top performing charts of 2008 printed bearish reversal bars on big volume. Leading coal stock <b>PCX</b> is an example of a stock distributing at the highs looking at yesterday's bearish, high volume reversal bar on the chart above. We define a key reversal bar as a stock that opens above the prior day's close and closes below the prior day's open (the prior session must be an up day). This type of reversal bar is often mislabeled by traders, as it indentifies potential trend exhaustion, so there must be a well establish trend in place for the signal to be meaningful. The gap up was a "last gasp" for the greedy bulls who are overwhelmed by a strong selloff. This is a clear warning shot to those who are long to tighten up stops or take profits if they are happy with their gains. <b>PCX</b> was not the only leader to flash signs of exhaustion, as JRCC, SQM, ANR, SD, and CHK also reversed off highs on strong volume. Along with reversal bar action, we saw a few ugly false breakouts in stocks like NE, DVN, ECA, CNQ, HES, PXP, NXY, APA, and ESV. With so many energy stocks selling off in unison, this leads us to believe there may be some sort of correction in the works over the next few weeks. Stay tuned. <img border=5 width= 559 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080620PCX.gif"> The wide war selloff in <b>HES</b> yesterday was a disappointing action, as the consolidation was settinp up nicely for a strong breakout move above resistance at 130.00. Remember to be patient and wait for the entry prices to trigger in the <i>Bulls and Bears</i> section. We listed <b>HES</b> long at 130.10 in yesterday's <b>Focus Report</b>, so if you jumped the gun and bought before that trigger you would have paid a dear price today as the shares got hammered $7.00 lower on heavy selling in the oil sector. With <b>HES</b> breaking down below support of the 20ma and the uptrend line, the setup will need a couple of weeks before it can setup again. <img border=5 width= 559 height=660 src="http://www.shadowtrader.net/focus_report_charts2008/080620COMP.gif"> The intraday comparison chart of Thursday's action above clearly shows the relative strength in tech stocks versus the S&P and Dow. From the big divergence we could potentially be seeing the beginning of a rotation out of energy stocks and into the strong tech names. The money flow game is something that traders should always be aware of, as we always want to be buying what the big boys want. There is no need to outthink the market and try to predict where the next big move will come from. We prefer to scan and let the charts do the talking. So what is holding up and could potentially rip higher next week with a little cooperation from the market. <b> AAPL </b>is still in good shape for a long entry on the break of downtrrend. The symmetrical triangle in GOOG is still very much intact. Stronger names like CSIQ, RIMM, and ILMN should be monitored for pullback entries. Non-tech stocks MA and V have held up great and could see some heavy buying action next week.
S&P is @ 1317 and i am going long right here.. not much left for trading just picked couple of call option...