So we walked in (or swam, drove, biked, crawled – however you came in today) today with a rather large gap down in the futures market and in the broad stocks as well. I Tweeted out a few things this morning as I always do. One of the things I said was (not exact words) – that we would likely see some bounce action and that you could possibly trade from the long side as navigate this upper range. This is exactly what we did – bounced faded, bounced and then faded – chopped around this annoying range for the whole day. This range trading will likely continue for at least a couple more days. Maybe we will see volatility all summer, we will have to wait and see about that.
Going into tomorrow I think you remain the same as you did yesterday – a little tactile but remain to take the set ups that are available. At this point in time there are stills some nice set ups out there but overall, they are dwindling.
The banks showed some nice strength today and look like they will breakout IF they today’s lows tomorrow or trade over the highs of today tomorrow. I would keep the banks on the watch as they continue to hold the gap from the start of the week. This gap needs to be defended – if given up – they need more time.
JPM and GS are showing the most strength in the banking sector but overall all look pretty good. BAC is not extended.
Oil got crushed today. Still on the watchlist for the macro breakout but really you need to be patient with this one. There will be alot of head fakes and it could be MONTHS before it really breaks out. Just keep an eye on it.
Gold may be trying to break the downtrend line, especially the gold miners. The miners seem to be breaking the downtrend line and a hold above it is now key going forward. I posted the GLD and GDX charts to StockTwits – you can see them below.
Best Buy (BBY) is trying to breakout from the most recent consolidation. Over the 27.15 level it looks like it can go. Definitely keep an eye on this one. One of the few good set ups I see right now.
Apple is still frustrating to many people (likely) because of it’s choppiness and unwillingness to breakout or break down. Personally, I would wait for the breakout or breakdown at this point. Anyway, there are better set ups out to trade than this right now.
UNH still looks poised to breakout – use the low of today as your stop loss for this breakout play.
KORS is starting to look better – a wild ride today but overall looks to be targeting the old highs. Not really something I want to trade though, it is very choppy and sloppy trading.
HPQ showed relative strength yesterday and then confirmed today. Looks good for higher prices, not chasing here though. NOT a short by any measures.
X under today’s lows looks like it could see another leg lower. Trash.
Bonds bounced today – expected – See how much of the bounce this is. The next few days will be a big tell for the bonds.
Alright that is it for the Daily Analysis. Have a good rest of the evening. Will be back tomorrow and if you do not already follow me on Twitter and/or stocks – DO IT – You get to hear all my thoughts on there.