Sunday, June 14, 2009

Weekly Watchlist 6/15

Going into option expiration week the SPX sits at 946 and just above its 200 day ema. It seems like the last two full weeks the market has done nothing but trade between 925-950. While most indicators are overbought and everybody and their brother is calling for a selloff, the market has shown incredible poise. I think we are due for a pullback as well and there are several signals from other markets saying that we will. It seems like the energy sector has been holding the market up as tech pulled back last week. The dollar looks ready to retrace its recent losses against the Euro and the bond market looks to have bottomed in the short term. These are just some of the markets I watch to see what the equities might do next.

With that said the price action on the chart of the SPX still looks bullish and this sideways consolidation may prove to be a coiled spring which is setting us up for the next leg higher. Of course we need to see this confirmed with a close above 950 first. At the same time this is not the kind of market you want to short so the prudent thing to do is get flat and wait for Mr. Market to show you some direction.

With this week being expiration week I think we could get that move we have been waiting for. If we can get a close over 950 then I think we see 989 quickly as a first target. My bias will be cautiously bullish unless we see a dip under the 20 day ema down around 925.

The watchlist:

Triangles>>> MVSN, GE

Flags>>> GAP, GERN, HRB, TAP

Breakouts>>> ANR, DV, CERN, CVC, JEF, K, FWLT


Anonymous said...

jason, Nice site. I have one question. On your triangles, flags which time frame do you chart from?

Jason said...

That would be on the daily chart unless otherwise noted.

Thanks for reading!