Happy New Year
We missed you, but it was good having the down time to recharge our batteries with family and loved ones. For the most part, it doesn't look like we missed a whole lot. The market still looks vulnerable, but not all that Bearish. The sentiment is iffy, and the technicals can go either way.
DOW: The Dow has outperformed and looks pretty strong still.
S&P500: The S&P flashed a weekly MACD Sell and for now this remains risky. Note the wedge.
NDX: The Nasdaq is diverging from the Dow rather dramatically.
RUT: The Russell still looks pretty good and that's a good sign for the market.
HUI: The Miners appear to merely be testing the prior break up.
PPH: The pharmaceutical holders look promising.
DJT: The Transports have been week and Dow Theory would say that this is a warning sign for the rest of the market. Maybe, but it's too soon to call this market dead, I can tell you that.
TTH: The telecoms have acted well, but that stick isn't pretty.
XBD: The brokers look to be gathering energy for SOMETHING.
DJUSCA: The casino's could be getting ready to pull back. Folks have been trained, I think. Still, a strong chart.
GBX: Greenbrier gave us a nice profit. I'd love to go back at it if it fills the gap a bit more.
YHOO: Yahoo continues to be a winner for us.
RX: IMS Heath managed to get us on Thursday. As a general rule, when you can watch things, it's probably a good idea to lift your stop during the first 1/2 hour to hour of trading.
HGSI: Human Genome nearly got our stop. Definitely lift the stop during the first 45 minutes on Wednesday.
UNM: Unum looks like it's still got some legs. This is a bullish consolidation.
CHRZ: Computer Horizon may be a head fake. If it breaks back up, let's buy it.
EGLT: Eagle Test went the wrong way.
CA: The 30-minute rule kept us out of trouble in the Computer Associates.
AHM: All the lenders are going to have some issues here and American Home looks vulnerable chart-wise too. Let's try a short.
COGN: Cognos looks strong here. If it has staying power, we want it.
Summary:
So we've got a pretty balanced view of the market. Shorts and longs both look appealing. There's no signs of a major top in here, but there are some signs that a sharp pull back may be in store for us. If that's the case, I want to see if we can't profit from such. Don't ignore longs though.
Be Well, and Trade Smarter Than the Average Bear!
-The ChartSmarts Team
Current Positions:
Short 50% YHOO at 26.47, stop at 26.47
Long 50% HGSI at 12.79, stop at 12.36 after 45 min.
Long 50% UNM at 20.68, stop at 19.84
Watch List :
CHRZ: Buy on a print of 4.64, stop at 4.52
AHM: Short on a print of 34.88, stop at 35.57
COGN: Buy 50% on a print of 42.81, stop at 40.67
Changes in Current Positions:
Target hit on 25% GBX, covered at 28.03 on 12/26 (+20.30%)
Stopped out of 25% GBX at 30.35 on 12/28 (+13.7%)
Stopped out of 50% RX at 27.97 on 12/28 (2.1%)
We are 50% long UNM at 20.68 as of 12/26
