With the Rally off following the recent attempt to push the market back lower again, the bulls are on the cusp of establishing a new higher-high off of the September lows and negating any renewed hope the bears might have had from a couple of weeks ago when the market sold off for seven out of eight straight days.
On the SharePlanner Reversal Indicator, the bearish reversal is still pushing southward but the bulk of the sell-off seems to have been realized already with the indicator nearing extremes and considering that three of the last four reversals occurred early on the SPRI. So keep that in mind, and don't forget that the market closes early today at 1pm eastern.
Today will be a light day on the post front for me as I will be focused solely on managing my current positions and using the remainder of the time with family.
Here's the SharePlanner Reversal Indicator:Read more...
Happy Thanksgiving! It has been a crazy year in the stock market but we have gotten through it and bettered ourselves and our portfolios as a result. I am thankful for each and every one of you for making SharePlanner what it is today. It wouldn't be the same without you.
I wanted to share this picture with you all from Investing.com, a site that I contribute to daily, as it perfectly sums up the market of the past seven years and running....
And again...HAPPY THANKSGIVING!!!
The S&P for all of its wackiness in 2015 has a very bullish pattern emerging for traders to possibly look forward to... if it can confirm.
And if it does confirm, you have the potential for a very promising start to 2016 as the pattern plays itself out.
The pattern is an inverse head and shoulders that you can see by looking at the chart below:Read more...
Terrorists attacks in France - Bullish, Russian warplane blown out of the sky - Bullish. The market seems undeterred of late, paying little homage to geopolitical events.
Right now the focus remains on the Fed, and the Fed only. Terrorist attacks can wreck havoc on the market but so far, the havoc has been quickly bought up as we have seen yet again today, with SPX so far rallying 16 points off the lows of the day and sitting just a shade below break-even overall.
It is dicey right now being short the market, but in the same sense, the bulls need to prove something. If the SPX can't establish a new higher high on the current uptrend it is on, it throws this whole rally into question.
But be careful with the shorts... heck be careful with everything. But in particular with your short plays, and if you find yourself adding some names from the list below, make sure you book the gains aggressively in order to minimize the chances of being squeeze out of the position.
Here's my list of short setups to watch:Read more...
Long Waddell & Reed Financial (WDR)
Long Tele Celular (TSU)
Long Amtek (AME)Read more...
The bulls aren't coming out of the gates 'guns-a-blazin' to start the week, however, while the week is short, it is also still young.
Thanksgiving week, minus 2011, has always been one of my favorite weeks of trading to be long in. Historically, it is a very bullish week as well. So, considering the rally the market has been on coming into the week, and the favorable technicals that it is sporting, combined with the historical bullishness of the market, I would say, at this point of time, I am more comfortable being bullish on this market than bearish. As a result, I am currently about 70% long on this market with 30% still in cash. My portfolio and that of Splash Zone members is looking pretty solid, and while I may add another position or two to the portfolio during the next couple of days, I like what I already have and am working with.
The list below represents my favorite setups in the market at this given point in time. Granted not all of them will hold up, some will retreat, while others will do great - that is the nature of the market. It is our job to manage the losing trades so that their impact is negligible, while the winning trades are maximized to the greatest extent possible.
Here are the long setups I am watching this week:Read more...