At the same time, prices across these indices have been constrained by an ascending wedge shape since the March low. These indices are now very close to bumping the tops of their wedge trendlines. Below are 2-year daily charts of the DJIA, DJTA, S&P 500, Russell 2000, and NASDAQ Composite indices with the wedges drawn in. In addition, I present the chart of the XLF, which may have broken below the bottom of its wedge. While it's true that wedges often have to be redrawn as new price data comes in, with 4 touches, at least the upper trendlines of these wedges look solid. Since this trendline defines an upper price boundary, the market may not have much more upside left. So while we'll still continue playing the long side, I'm going to be a tad more conservative with sell-stops and offer fewer long ideas.
We bought SLB today.
| Current Holdings | ||||||
|---|---|---|---|---|---|---|
| Ticker | Basis | Closing Price |
Perf. | Sell-Stop | Addl Exit Guideline | Chart |
| HTZ | 9.71 | 10.99 | +13.2% | 9.71 | Consider setting sell-stop on partial positions at 10.47 | Chart |
| ARIA | 2.26 | 2.63 | +16.4% | 2.49 | N/A | Chart |
| V | 70.44 | 72.31 | +2.7% | 70.44 | N/A | Chart |
| SLB | 58.43 | 58.50 | +0.1% | 56.84 | N/A | Chart |
A couple of longs, plus let's probe the short side with the financials.
| Ticker | Entry | Exit A | Exit C | Chart |
|---|---|---|---|---|
| SKF (Ultrashort Financials) | 28.11 | 26.39 | N/A | Chart |
| SOLF (Solar Fun) | 6.26 | 5.78 | N/A | Chart |
| SCHN (Schnitzer) | 58.13 | 55.99 | N/A | Chart |
Please refer to "How To Trade The Ideas" (right-hand side) to read this table.
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