STRONG Market
So, just a couple days ago we were seriously worried about the deteriorating breadth and momentum, but now we're concerned about the market running away. What a difference a day makes, eh? Seriously, the market has improved considerably, but it's now over done. The options data probably doesn't' mean much after op-ex, but it does suggest that we could get a pullback. At this point, we probably won't play for it, though we may snug stops pretty tight in the next day or so if the market moves higher unabated.
DOW: Nothing but air above the Dow.
S&P500: The S&P is also quite strong and looking unstoppable (and thus a major worry to me).
NDX: The Nasdaq put in a funky stick, but honestly this index is probably healthier than the rest internally.
RUT: The Russell is lagging and that could be a worry for the market.
HUI: The miners are doing what they do, which is wear technicians out. Looking a bit better though.
KG: King is looking better now.
BONT: Bon Ton was stronger than a short should be and that means it may be gone soon, but it'll be gone for a gain. Not bad making money on shorts in a strong market.
PGTI: PGT was quite weak and it looks to me like the lows won't hold. Cross your fingers. The action is Bearish.
EVC: Entravision pops up, but puts in an odd stick. A nice holding and doing well price-wise but it may go soon unless that stick was an anomaly.
PLCE: Children's Place is gone but gone for more gain on the short side than the market gave on the long side.
GNTX: Gentex did not do well and it's a possible problem.
NSTC: Ness broke up and we're now long.
SUNW: Sun Micro is poised. We own this stock already in managed value accounts.
CAG: Conagra broke out of the tight wedge so if it keeps going, we'll be getting long soon, with a bit of luck.
HRL: Hormel is a classic set up AND a possible buy out play (I view any food or consumer non-durable stock as a potential buy out).
HXL: Hexcel broke up, but did not extend. Still, the volume appears interesting to me.
XTXI: Crosstex still looks OK. Go again.
AATI: Advanced Analogic is just a classic bullish wedge.
ADBE: Adobe sure gets plenty of money from us, but an ugly pattern is not to be ignored. I'm willing to add a short here, if it continues to misbehave.
NDN: $0.99 Stores also looks bullish in here. I don't like long funky wicks, but it could still play for gunslingers.
Summary:
The market is bullish, but there are hints of weakness under this mantle of strength in the major indices. If it wasn't obvious from looking at the sudden under-performance by the Russell, then all one would to do is look at some of the gains we've managed on the short side during this rally. So, from our perspective, we will favor the long side, but we'll also keep a short or two in select issues. The market is due for a correction and if one comes in the next day or so, a short or two might keep us in the black on a down day.
Be Well, and Trade Smarter Than the Average Bear!
-The ChartSmarts Team
For 4/23/7:
Current Positions:
Long 50% KG at 18.94, stop at 20.51
Short 50% BONT at 55.21, stop at 53.38. Target is 47.83
Short 50% PGTI at 12.31, stop at 12.31. Target is 10.91
Long 50% EVC at 9.29, stop at 9.86
Long 50% GNTX at 16.54 stop at 16.16
Long 50% NSTC at 13.21, stop at 12.68
Watch List :
SUNW: Buy 50% on a print of 5.97, stop at 5.73
CAG: Buy on a print of 25.47, stop at 24.83
HRL: Buy on a print of 37.97, stop at 37.21. No 30' rule
HXL: Buy 50% on a print of 20.11, stop at 19.34
XTXI: Buy 50% on a print of 29.66, stop at 28.47
AATI: Buy 50% on a print of 6.92, stop at 6.64
ADBE: Short 50% on a print of 41.78, stop at 43.27
Changes in Current Positions:
Move the stop up on KG to 20.51
We are stopped out of PLCE at 51.37 (+ 4.8%)
Move the stop up on GNTX to 16.16
We are now 50% long NSTC at 13.21
