“You can observe a lot just by watching”-Yogi Berra
The market was all over the place last week but by the close on Friday it really only landed 10 handles from where it started. Thursday we saw a big sell off, but most of it centered around Bernanke and the Fed. The extension of Operation Twist was expected, but the market sold off the obviousness as if it were a surprise. Bottom line, the market rallied hard in June and it was looking for a reason to let some air out.
Who knows where we go this week, but it should be exciting as usual. Uncertainty remains the watch word for the global economy in this environment. Market forecasters are still predicting more stimulus from in the form of a third three-year LTRO and QE3, but officials at the Fed and ECB have held off on more accommodation so far. Despite unprecedented transparency from central bankers, it’s still unclear how much worse the global economy has to get before they will swing into action again.
Please check the P&L for entries and stops on the following new additions. As always, I strongly recommend avoiding the first hour or so of trading on a Monday when there is a lot of news about. If you must enter do 1/4 position.You can click the charts to enlarge.
WLK– A break above the white downtrend line would be bullish so lets call it a buy at the 53.17 level
ALNY– We traded this one several months back with great success. It may be ready for another move, but it needs to get through the 12 level with volume.
ARUN– This one has been beaten to death but some of the technicals are improving. It could get going over 15.25 with volume.
ENTR– Another big downtrend line that if broken could be good for a trade. 4.40 level with volume.
BOIL– I honestly don’t know where they find the symbols for some of these ETF’s but this is the ultra long for natural gas and it is a very bullish pattern as it is in a bull flag, but it needs to break above that white downtrend line. This is a risky one so please play UNG long instead if you don’t like volatility.
Lottery Ticket Idea- NEON
Jimmy Altucher was very good on his VRNG call and he has a bullish case for this one now. Here is recent piece on the name. It may be the kind of name you buy very small and forget about. You never know. Not on the P&L
Here is the article http://bit.ly/Np5j2M