New week ahead with earning reports underway. On Friday we had a divergence in the market as the QQQQ closed 2% above the SPY and DIA. This was mainly due to the strong tech sector. XLK and SMH are both approaching key resistance areas but are strong. Meanwhile XLF tumbled on Friday which mainly caused the SPY to close way behind the QQQQ. Looking at the daily charts, the SPY formed a swing low after a momentum push and should prices go above 118.50 the next target is 119 then 120.70. To the down side, key support is at 116.75, the support of the SPY for the past two days. Should the market hold below this level then that would signal weakness. If we open below this level but fail to hold and come back above it then that would be an excellent opportunity to be long as we are still in a bull market.
Longs:
HAL: A long and following the strong XLE sector. XLE still has way to go to get to its key resistance area at 62.30 and that could also mean that HAL has alot of room as it has been outperforming the XLE.
ORCL: A long thats following the QQQQ and NASDAQ. This stock is strong and has room to go.
PM: Remains an A long its still in an obvious uptrend.
BRCM: A long with room to go. IPT at 38.50
COP: A long with room to go after it took out its key resistance level at 60.55.
MCD: A long above yesterdays close with room to go.
Breakouts:
AMGN> 56.90. IPT 58.30
BBY: > 42.70.IPT 44.20
HPQ> 43.15. IPT 43.90
DD> 47.00
SLB> 65.00
ADM> 33.50 IPT 43.10 with resistance going back to July 2008.
Shorts:
AXP: A sell short. It formed a bearish fuel candle after on its bullback. IPT at 38.75, second IPT at 37.90.
WFC: A sell short. IPT at 23.40, second IPT at 23.00
JPM: A sell short. IPT at 36.60, second IPT at 35.60.
BAC: A sell short with room to go. IPT at 11.30
COF: A sell short: IPT at 36.75, second IPT at 36.20.
Breakdowns:
AUY< 11.15, IPT 10.80.
LEN< 15.20. IPT 14.65.
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