Market Pedals To Nowhere

A stationary bike, a bicyclist and a blender.

Pedaling, not for the purpose of going anywhere. Rather, for working the quads and blending cocktails.

The market had few buyers, thereby did not really go anywhere.

On the other hand, some stocks gave buyers a nice buzz!

After last week’s sell-off and then Monday’s bounce, we wondered if the buying coming in to the market would sustain.

Likewise, we wondered if the action gave buyers a cheaper entry into countercyclical trades.

Moreover, we wondered if the market presented us with a low risk opportunity to go short (buy puts).

Our arbiter for those musings and the answers rest with our dear Sister and 2017 Wonder Woman, Semiconductors.

Semiconductors delivered a confirmed bullish phase.

The Utilities Sector rose, giving traders a safety play.

The Russell 2000 delivered a short sell opportunity by falling nearly 1% while the other three indices’ prices closed basically unchanged from the day prior.

Which stocks gave both bullish and bearish investors a buzz?

Rare when the market simultaneously gives the bulls, bears and those in between action.

Stocks such as Wynn Resorts (WYNN), and Apple (AAPL) performed well.

The worst of the worst performers, unsurprisingly, is the brick and mortar Retail stocks. Granny Retail, the ETF XRT, sits only inches away from reversing a 7-year uptrend.

Commodities suffered as well. The grains, particularly corn, came close to trading near its all-time lows.

Getting back to our muse, Semiconductors (SMH), unless it rolls over and breaks below 86.00, will keep the bulls content.

However, the Russell 2000 (IWM), unless it clears above 140, will keep the bears content.

Added to the blended cocktail, the Federal Reserve meets tomorrow.

With Granny Retail passing out and Sister Semiconductors fueling up, a stationary bike that pedals refreshing cocktails sounds right.

S&P 500 (SPY) 245.55 support. Confirmed bullish phase with resistance at 247.

Russell 2000 (IWM) Lot of buyers have to come in to get this back above 140 and the 50-DMA. Under 136 trouble

Dow (DIA) Ultimately, 218.49 is the number to hold before this throws in the towel.

Nasdaq (QQQ) Confirmed bullish phase. Has to clear 144.30 now

KRE (Regional Banks) 54.00 major resistance. 51-52 support

SMH (Semiconductors88.35 big resistance and 86 closest support. Then there’s the 50 DMA

IYT (Transportation) 166.50 pivotal support. I really wonder how this can get back above 170 but will wait to find out.

IBB (Biotechnology311 the 50-DMA this must clear

XRT (Retail) 38.50 key support to uphold

IYR (Real Estate) Unconfirmed warning phase

XLU (Utilities) 53.74 support as this climbed .50%

GLD (Gold Trust) 121 pivotal support

GDX (Gold Miners) Sitting on the 200-WMA and holding the 50-DMA

USO (US Oil Fund) Haven’t much to say until this changes phases on a weekly chart

TAN (Solar Energy) 22.00 resistance and 21.70 nearest support

TLT (iShares 20+ Year Treasuries) I’m looking at that exhaustion gap high to see if this gets close to it or not

UUP (Dollar Bull24.20 support-through 24.40 could rally more

FXI (China) Possible exhaustion gap top if cannot get back to 43.20

Disclosure: None.

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