The Wrap for 6/29/11


The market had another good day today and energy and especially financials led the way. Citigroup caught an upgrade and BAC settled for gazillions, but it was construed as an overhang that was removed. The financials moved strongly on that news as well as some strong short covering.

As you know I added FAZ (as a hedge) on the chat room the other day. That is not working and I am watching the 50 day moving average level as a place to exit and take my medicine.. I will give a little room below that line as it closed near that level today., but very tight.

Our swing trades this week have been almost perfect however. (See P&L)

Energy (XLE) has been on fire as well as materials (XLB) and metals and mining (XME) the last few days, but if you look at the daily charts they are all up against their respective 50 day simple moving averages, so the bulls need to show conviction to break things out.

To me, some names look like shorts, especially AAPL. Yes I know it is the chosen one and can do know wrong, but it still looks challenged technically, and unless this market gets a violent move up, it is getting close to fail spot on the daily chart.

50 day moving average resistance
50 day moving average resistance

I raised stops tonight and today’s trades are listed in bold on the P&L as well as our triggered names. Always check the P&L for adjustments.

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