Market appears stable enough this pre-market to maintain an upward bias. Looks like the energy futures are recovering after holding recent lows of this week, so some money flowing back into energy stocks. Metal stocks also appear to be stabilizing and preparing to inching back up. Several tech/internet stocks are becoming more attractive than usual and appear to actually be picking up some more interest. A few that come to mind: CSCO, ULTI, CPHD, NVDA, SYNA, FARO, APH, WAT, TRMD, WDC, CYTC, SNDA, AMZN, ORCL, SLAB, CERN, COGT, CUB, SINA, CREE, ASML,ASMI, CY, MSCC, TXN, DHR, VSEA, BEC, PKI, ROP, AUO, TASR, ADSK, ATVI, HHH, FALC, NUAN, SWH. Other strong stocks such as RIMM, APPL, GOOG, BIDU continue to perform well.
Yesterday I pointed out rotation was going on the past few days in
Energy and
Metals, and how we would be interested in buying into this weakness as we felt those currently strong trends should still continue higher. Today, less than 24 hours from sharing those comments, we see clear buy rotation trickling back into Energy and Metals stocks. In our live class I showed one technique how I was able to get back into RTP and take a new trade in BHP yesterday afternoon. Currently still holding a few energy stock positions. Still have over 60% of two accounts in cash. Currently only nibbling in small ways with new trades until the Dow and S&P move higher more.
The USO SC room trade is working perfectly from yesterday's trigger. It is an example where, based on a technical analysis perspective combined with a DT Profile, we would seriously consider staying with this trade as long as possible, or adding to it on the next dip that covers today's gap but does not take out yesterday's low. We believe this trend up can sustain itself into the near future once USO breaks out above the current SC target. I personally believe it would not surprise me to see it hit the last major high before the end of this year.