Charts

We've come a long way since the 666 bottom but as you can see bulls are still completely in control with all trends intact.    Of course even a few, long high-volume red candles could change that but until that time comes, stay long.    

However, as we mentioned in the previous post we think that the next 20% is going to be much more difficult than the last 20% and we'll be expanding our scans to look at more sectors than just our usual favorites (i.e. beyond just commodities).    We like tech a lot and are going to get busy trying to find decent tech set-ups this weekend. 

Treasuries are hanging on to support - not quite over but they have to bounce soon or trend will continue down. 

The S&P is currently working its way through resistance and if that goes then 100 and 107 next stops. 

We've enjoyed the run in commodities but if they stall we'll be looking for a rotation into tech. 

Ag-Chems were the first commodity group to run into resistance -- working it off now. 

Trannies right under resistance and and the 200 SMA. 

We can see IYR run up to the 200 SMA and then 40.

Gold taking a breather.   Sideways action would behoove any possible break-out in gold. 

Gold miners also consolidating. 

Next resistance 90 on DIA.

XLF coasting under the 200 SMA with resistance at 13 and support at 11.5. 

Murky out there

We have a tough time making money on days like today.  Why?  Because the movement seemed random, technicals weren't really respected (stocks would go through sup/res lines like they were invisible), and usual correlations were not respected (USD was firm/gold was killed,  but treasuries were down?)

Our guess is that the easy tape we've seen in the last few months is going to give away to more confused and choppy action.   Oil from $35 to $70 was a much easier move than it will be from $70-$140.   We're going to hit a mountain of supply as commodities reach more fair pricing and rates inch up.      

So what to do?  Even though the bull trend is still intact, we think that we'll be returning more to a stock picker's market rather than just buy any commodity and watch it rip higher.    

It could still be early for this call but we strongly believe that this will be the beginning of the next period in the market.     As always, time will tell.    

Foggy

It's foggy out there today in market land as USD has firmed up, oil is holding flat, gold is down, and traders are trying to jostle for position.       

Don't get caught up in the noise -- take it easy today until some kind of clear direction emerges.

We'll post up some charts this weekend. 

Free Newsletter

We discussed how we buy support in today's newsletter.    It's free and if you want it just write to us at  info AT highchartpatterns  DOT COM   and we'll be happy to mail it to you.   Please put Support in Subject Line. 

More Trades

Some good opportunities from our newsletter last night.   Here are all the alerts that triggered after the open (we also lost many that gapped above).   Some were easier than others, but all worked. 

SPG 55 worked very well. 

POT dipped to our 118 buy spot. 

JRCC 24. 

FCL 31.

We were looking for a trade on DIA at 86 -- it gapped above but then pulled back within a nickel of our spot.

BNI 74 was smooth.

ANR 29 worked. 

Hard to take credit when everything melts up -- enjoy it while it lasts.