I still think rotation out of strong leaders and 'churning' will happen today as institutional traders wait patiently for Friday key report and next week a more active market. Not seeing any quality buys yet, so standing aside and tracking pullbacks for further ideas. Bulls will not return until either tomorrow, or sometime next week. Is a good patient waiting time, time to have cash for action later.
Here is today's live class outlines with pre-market observations and comments... will update live when your live class begins at 10AM....
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My friend Marty called this afternoon to tell me about a trade he saw setting up in Dynamic Trend, the SB room buy setup in EMC Corp (EMC) this afternoon. (see below) It is only a small trade but this stock has a habit lately of exceeding targets as it continues to slowly trend upward over an extended period of time. Last time Marty called he told me about SB trade setting up (see below) in Murphy Oil (MUR) which has more than exceeded its target goal since then. Marty, you're on a roll! Thanks for the heads-up!
Two afternoons ago I posted this tread (
click here to see) which suggested we could see money flow back into energy if this weeks lows could continue to hold in
NY Crude Oil. Here is an update of that trade setup with a current DT Profile. if the
SD ends up some how next week exceeding the SC/SD targets, you might focus on the PA targets. Is a hard call, but not impossible to imagine.
We mentioned in our live class we would like to see metals base out this week and return the rally by Tuesday/Wednesday of next week.
Here is an update of the Gold SB trade posted here showing a nice setup. (click here to see original post) Here is an update of that trade setup. We may not see a major rally in metals Friday, but we are still on track to seeing money flow back into them sometime next week... so long as this low continues to base out and hold for now... then rally more next week. (ideally)
We mentioned in our live class we would like to see metals base out this week and return the rally by Tuesday/Wednesday of next week.
Here is an update of the
Silver SB trade posted here showing a nice setup. (
click here to see original post) Here is an update of that trade setup. We may not see a major rally in metals Friday, but we are still on track to seeing money flow back into them sometime next week... so long as this low continues to base out and hold for now... then rally more next week. (ideally)
A week ago last Thursday I posted a
US Oil Fund (
USO)
SC buy room trade. (
click here to see that post) That trade hit its target the next day and retraced back to the buy trigger. I actually took that trigger a second time today and will be trying to the best of my ability to stay Long this time. If we can get more official rotation in a more powerful way by next week in our energy futures contracts, I think we will also see more buy setups getting triggered next week in energy stocks. I don't think it will happen with conviction by Friday, but maybe... maybe mid-next week. We have targeted several pullbacks currently going on in energy related stocks where we are willing to still trigger Long... but hoping we can get the setups to happen sometime next week for a better pop up. We still are treading on the potential of a possible top building this month in our energy futures/stocks if we cannot, for example, have Crude take out $85 by Friday of next week. We also want to see a more significant rally now in Unleaded Gas, Heating Oil, maybe Natural Gas too by next week to get more excited. If this SC goes above its target this time, watch the new SD target for helping manage my trade. I combined the DT idea with my Elliott Wave ideas for a possible bigger Wave 3 uptrend to continue. If I am interpreting this chart pattern correctly, once we kick in a return of this recent uptrend, we should see it extend for a period of time.
Below is the Trade Balance for the Overall and Sector/Groups US market for today. Energy once again pushed out the weakness. The Basic Materials has gone neutral again. The Gold/Silver group got some nibbling today but the Steel/Iron and Metal Mining groups we talked about today in our live class are still hesitating a little bit. If my intuition is correct they will be better able to return the uptrend some time early to mid-next week.