Position: Long EWG 28.02 1/2
Profitable Trailing Stop: 29.04 reached all out
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Existing Position: Long TEX: 35.00
Current Price: 34.66
Name of Instrument: Terex Corp
Sell Stop: 32.44
Reason for Trade: Good earnings report and crossing the 80 monthly moving average second time this year, which hasn’t happened since 2008.
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Existing Position: Long SLV 21.82
Current Price: 21.07
Stop Loss: 20.93
First Target: Take ½ 23.44
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Existing Position: Long XRT 82.78
Current Price: 84.58
Stop Loss: 82.78
First Target: 85.77 for 1/2
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Existing Position: Long EEM 42.85
Current Price: 42.46
Stop loss: 42.09
First Target: 44.25 for 1/2
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Existing Position: Long: FXI 37.31
Current Price: 37.85
Stop Loss: 36.77
First Target: 38.97 take off 1/3 to 1/2
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Looks like a stay of execution granted by the Federal Reserve and their clarification of no tapering while the economy remains soft. Therefore, although the troublesome small caps Russell 2000, closed red for the end of the week, with yet another big distribution day in volume, the money floated into other areas. The Dow climbed along with several individual names such as FedEx, in the transportation sector, US Steel, in the Iron and Steel Group and some names related to China including the ETF for China-FXI. As a result, NASDAQ and S&P 500 held the fast moving averages, leaving the market in relatively good shape. NASDAQ closed marginally lower for the week, while the Dow and the S&P closed marginally higher. The huge volume in the small caps does not constitute a blow off sell off since the move down is not extended enough. For now, looking at this week, unless the market begins with a gap lower all around, see the small caps digesting above the 50 DMA and the other indices continuing their journey up.
S&P 500 (SPY) Last week’s low needs to hold to keep this in good shape. Subscribers: Pivots Negative in all but DIA
Russell 2000 (IWM) Getting close to support around 107.50 with an approaching oversold daily relative strength indicator. Over Friday’s high would be a relief
Dow (DIA) Over 156.27 a very good sign while again, last week’s low need to hold
Nasdaq (QQQ) Friday’s high is a great place to clear while Friday’s low, also the low of the week, needs to hold.
XLF (Financials) Hung on thanks to JP Morgan. Now, has to clear 20.80 to look better
SMH (Semiconductors) 41.44 is the recent high to keep this going. 40.73 is where you want to see this hold
XRT (Retail) 83.55 last week’s low to hold while this remains a great candidate to lead.
IYT (Transportation) Looking a lot better
IBB (Biotechnology) 4th time this year, this is will show if it can hold or if will break the 50 DMA
IYR (Real Estate) Inside day
XHB (Homebuilders) 29.85 is the ultimate support if this is to work its way back up the channel
GLD Back in a bear phase
TBT (Ultrashort Lehman 20+ Year Treasuries) Heading to the 50 DMA resistance
UUP (Dollar Bull) Unconfirmed phase change to recovery
EWG (Germany) If this does not fill the gap to 29.30, could be a scary looking island top.
Bye for Now!