Op-Ex Cha-Cha
Thursday and Friday the market did the Options Expiration Cha-Cha, taking two steps down, then two steps up, then two steps back down and a cha-cha-cha back to almost even on Friday's close. Now we can get back to normal and see if this market has any conviction.
DOW: The Dow continues to ride the trend line.
S&P500: The S&P staged a decent come back on Friday.
NDX: The Nasdaq was down, but not much.
RUT: The Russell, again closed higher. This is a sign of ample liquidity.
HUI: The Miners were down but just marginally.
DXY: The Dollar can't hold a bid here. Not Bullish.
TYX: The Long Bond yield continues to fall, but this stick may signal a bounce in interest rates.
PLL: Pall is gone for a profit.
QCOM: Qualcom was strong again for us on Friday.
VAR: Varian bounced right where it should...and smartly too.
TUP: Tupperware is coiling. If it can get above the recent highs and hold, this one could run.
MEE: Massey Energy pulls back but only rides the broke down trend line.
MOLX: Molex broke down, but the lack of follow through suggests a possible fake-out.
CMLS: Cumulus Media still looks Bullish to my eye.
BRCD: Brocade still holds promise, too.
GCT: GMH Communities rallied smartly off the lower trend line.
AOS: Let's pass on the AO Smith. The last thing we need is a big gap against us.
ISBC: Investor Bancorp could get some legs here.
VDSI: Vasco Data looks like a classic Buy set up.
NFLX: Netflix is suffering from folks worrying that they won't be up to the new movie delivery technology. Meanwhile, NFLX is minting money and letting it's competitors wear themselves out trying technologies that aren't yet ready for the market. When this one pops, I think we'll se a major squeeze.
Summary:
Tuesday should give us a better idea of the health or weakness of this stock market. We need to look long, but I'll be keeping one eye on the sentiment and the other on breadth, in case we are to correct before launching higher. So far, there are no signs of an impending end to this Bull market.
Be Well, and Trade Smarter Than the Average Bear!
-The ChartSmarts Team
For 2/20/7:
Current Positions:
Long 50% QCOM at 38.26, stop at 41.47
Long 50% VAR at 49.13, stop at 48.33
Long 50% TUP at 23.64, stop at 23.29
Long 50% MEE at 24.18, stop at 23.21
Watch List :
MOLX: Buy 50% on a print of 30.44, stop at 29.42--or--
MOLX: Short 50% on a print of 29.42, stop at 30.44
CMLS: Buy 50% on a print of 10.52, stop at 10.13
BRCD: Buy 50% on a print of 8.74, stop at 8.24
GCT: Buy 50% on a priont of 10.12, stop at 9.71
ISBC: Buy on a print of 15.74, stop at 15.42
VDSI: Buy 50% on a print of 15.47. stop at 14.84
Changes in Current Positions:
We are stopped out of 50% PLL at 35.23
Move the stop up on QCOM to 41.47
Move the stop up on VAR to 48.33
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