After yesterday's bounce, the bulls had a golden opportunity to really push the market higher. Instead, we had a very boring session with the market marginally higher. The daily chart of the S&P sports the beginnings of a bear flag. And what I find most damning is the chart of the
NASDAQ Bullish Percent Index, symbol BPCOMPQ. BPCOMPQ measures the percentage of NASDAQ stocks that are in uptrends (as defined by having bullish targets vis-a-vis point-and-figure analysis). This chart is looking just about ready to come undone, falling below 60%, below its 10- and 20-day moving averages, in a near-vertical fashion. BPCOMPQ is an indicator The Real Time Trader uses to gauge bullish sentiment, as the NASDAQ serves as a fair proxy for risk appetite, housing as it does a riskier set of stocks than its fellow major averages. At any rate, by several counts it appears the air has been let out of the market.
We bought our two longs from yesterday anyway, so let's see if the bulls can build on today's minuscule gains.
| Current Holdings |
| Ticker |
Basis |
Closing
Price |
Perf. |
Sell-Stop |
Additional Exit Guideline |
Chart |
| SKF |
46.27 |
46.41 |
+0.3% |
44.39 |
N/A |
Chart |
| ZSL |
10.17 |
10.35 |
+1.8% |
9.74 |
N/A |
Chart |
| AEIS |
10.21 |
10.14 |
+0.7% |
9.79 |
N/A |
Chart |
| AHL |
23.43 |
23.63 |
+0.9% |
23.13 |
N/A |
Chart |
The market could go either way tomorrow, but in the medium-term (2-4 weeks), most indications suggest further downward movement. So let's go with the medium-term trend for tomorrow's ideas. A warning that SZK is VERY low-volume.
New Trade Ideas
| Ticker |
Entry |
Exit A |
Exit C |
Chart |
| SRS (Ultrashort Real Estate) |
23.17 |
21.38 |
N/A |
Chart |
| SZK (Ultrashort Consumer Goods) |
65.33 |
64.33 |
N/A |
Chart |
Please refer to "How To Trade The Ideas" (right-hand side) to read this table.
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