Daily Commentary
Earnings To Drive S&P 500 To 1400
Published: Monday, July 16, 2012

The S&P 500 (1356.78) was able to hold the 50 day moving average Friday for the 10th consecutive session, and in the process notched an impressive accumulation day. The near term pivotal resistance is found at the convergence of the 20 week moving average at 1359 and the recent weekly highs (3 of the last 4 have occurred between 1361 and 1363); so between 1359/1363. Traders should have been fadi ...
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Daily Commentary
Should I Stay or Should I Go
Published: Thursday, June 28, 2012

The S&P 500 (1323.50) rallied back to the initial break out point of the Inverse Head and Shoulders at 1335 yesterday. 1335 also coincides with the down sloping 10 week moving average on the weekly chart. We are finding support this morning at the 20 day average at 1321 as we await the Supreme Court decision on Obamacare. If we spike on any decision to strike it down, watch for resistance at yest ...
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Daily Commentary
Fade Further Strength Towards 50 DMA
Published: Wednesday, June 27, 2012

The major indices are rallying for the second consecutive trading session, having modestly undercut support off the 20 day moving averages. We are looking to unwind long side exposure as and if the S&P 500 (1330.47) moves towards its down sloping 50 day average at 1341, and on the Nasdaq (2876.32) this comes into play at 2900. All focus tomorrow will be on the EU Summit and the verdict on Obamaca ...
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Daily Commentary
20 Day Average Buy Set Up At 1321
Published: Monday, June 25, 2012

Since we lost wrote the S&P 500 (1335.02) did break its inverse head and shoulders pattern, and surged to the top of our predetermined range at the 20 week average at 1360. The slope of the 20 week average is just starting to turn lower which makes us somewhat cautious about the longer term direction of the market. Our inclination near term however is to ad modest long side exposure on this initia ...
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Daily Commentary
Inverse Head and Shoulders
Published: Thursday, June 14, 2012

The low of the last five sessions has occurred at the 10 day moving average on the S&P 500 (1314.88) as it hugs support above the 10/20 day convergence, currently at the 1305/1310 level. What was resistance has now become support. The market looks increasingly coiled for an upside surge. We are tracing out an Inverse Head and Shoulders pattern with a potential break out above 1336. How perverse ...
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Daily Commentary
Major Short Covering
Published: Friday, June 08, 2012

The inability of the S&P 500 (1314.99) to rollover below 1275 after it closed last week below its 200 day moving average, led to a strong short squeeze the past two sessions. The mean gain in the stocks we listed Monday morning was 6% from Monday's open to Thursday's open, and so the relief from a near term oversold condition was satisfied. Now what? We said we would only move back to the ...
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