{+++}I am switching over to the new video system, so tonight’s commentary and charts will be here. Best efforts will be made to get one out in the morning pre open.
The big news as I write, is that Greece got the necessary votes to pass their austerity measures. So far the Euro is up about 1/4% and S&P futures are up about $5. Athens is on fire though (literally), as the citizenry is not pleased. There is also some chatter that the Saudi’s have warned Syria to behave. I’m trying to confirm this, but if true keep your eye on oil and the Mideast this week.
The first half of February has been solid for the market (with the exception of Friday) as some sectors are starting some mini rotations. For example, the fertilizers that have been on fire, but are pulling in. As a matter of fact, the group is staring to look ugly.
Steel (SLX) and coal (KOL) which looked on the verge of breakouts higher, are now breaking their daily uptrend lines lower. The biotech group which was hot a couple of weeks ago, roughed us up a bit last week.
The S&P is still in its uptrend on the charts and it bounced of its 10 day daily moving average on Friday. I am currently carrying ACHN, LULU and TVIX as positions right now. TVIX was added late Friday as things started to unravel, it ripped higher then closed lower for us. If it opens below the stop I will let you know in the morning what I am doing with it.
For now charts still look good, the pullback is healthy, but could trend lower after any bounce. I am still looking at 1370 as my absolute upside target and maybe -1300 as near term worst case downside. Here are a few names to watch.
Watch NOV over 83.70 with volume.
Watch TKR on a move over 52.50 with volume.
Watch CHRS through the 5.42 level with big volume.
N- Possible pullback buy here. It has also just about filled the Feb. 3rd gap
This market is still loopy and I’m still trading smaller positions through the remainder of earnings season. The above names are not going on the P&L tonight, but you can play those levels for your watch lists. They may get formally added depending on market conditions.