Market Talk

Again an up day with many opportunities (best one being RL 70 from our newsletter last night for almost a 5 point move) but on the whole a chopper session. We like this gap fill area as the medium-term destination for the SPY and think that SPY 110 will represent a short-term top for the market.

Today's triggers

WLT 63 good for 1% before reversal. Note that with the exception of RIG the commodity alerts worked but all eventually reversed. Commodities need a rest and any pull-back now would be a positive.

Not a coincidence that the best mover from our list today was a non-commodity stock. SOHU 66 very nice move for almost 2 points.

RIG 83 reversal for a loss

Good for 1% trade on MEE before reversal.

Great set-up on AKS at our 22.5 spot for a 2% win.


Again, solid action today on the triggers with small losses on RIG reversal and wins on AKS MEE SOHU and WLT. However, note that reversals were the norm in the commodity stocks and this could signal a short-term top in these names.

Update: reversal up for our commodity names; choppy action (USO looks like V). The more extended the commodities, the more choppy the price-action. Expect more going forward.

Today's triggers

BTU 37.25 alert worked for almost 2 points.

CNX 43 worked.


ESV didn't do much at 41

RIMM worked well on our 80 alert spot.


A ridiculously easy bull market in which one can buy any dip, any time. How long will it last?

Buy on the dip

As most of our readers know we are primarily break-out traders. However when it comes to certain type of stocks we prefer to buy the dip rather than the rip. Note on the following chart of the gold miners -- after the initial break-out support was bought but also when investors got excited and the metal became extended in price the opening gap was sold.

We see this happening also on an intraday basis and are buying gold on dips to ascending EMAs.

Right now the best action is in gold stocks (not in terms of the stocks going up every day but rather obeying technical rules and bouncing where they are supposed to on a daily and intraday basis). Until this changes, whenever that may be, gold stocks will be our focus.