Longs:SLW, TRV(58.75), ALTR (38.50), RIMM (14.50), TIF (64.50),AKAM(64.50), CIEN (14.75), JDSU (13.85), X (27.50)
Breakouts:BHI>52.85, CDE>29.50,WLP>67.00
Shorts:NEM (63.00), GG(49.50)
Notes:
- It will be important to assess the open today to identify whether these plays in commodities are valid or not.
- Hong Kong and Shanghai performing strong after they broke out of their ranges and trendlines respectively. This is good for equities.
- XME failed to follow all other commodities yesterday after they all went up except for the metal industry. This was mainly due to weak economic indicators from China who are considered to be a key importer, this trend shouldn't last long however as the Shanghai index as mentioned above seems to be stabilizing where accumulation is begining to take place.
- The SPY formed an hourly head and shoulders pattern that could lead to some selling before investors pick it up at lower levels. Key levels to watch are (R=136.30 S=136.00) with quant studies indicate a pullback is on the cards. I will continue to trade cautiously in this environment, treating any short sales with the utmost diligence due to its counter trend characteristic. Serious short selling should be triggered by a catalyst.
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