Trading Notes for Today – May 16th

Solid break higher for the S&P 500 index and the markets overall. The move continues to find rally points to push through any resistance and continue make new highs. Protect your risk and keep looking forward.

Sectors to Watch:

  1. Gold took another turn lower breaking support. GLL is now in play again and DUST both are showing the weakness in the metal. both are leveraged, but the upside in the short ETFs are positive. ZSL accelerating as silver remains weak as well.
  2. Agriculture (MOO) consolidating near the $55.25 mark and ready to move higher? Look for break to add to position as trade. Break above $55.25.
  3. TAN – Solar ETF is rising higher.
  4. SOXX – semi’s moving higher on continuation move on the upside.
  5. Technology is consolidating near the high short term. Didn’t participate on the upside and we are looking for confirmation of the current levels. Tighten your stops and watch how today, plays out. Break above $31.75 positive to add a trade on a follow through.
  6. Utilities (XLU) – broke the first level of support at $40.30, held at the key level of $39.65. Looking for a bounce play and opportunity to add to the position. $39.95 move marks for opportunity to add to the position. If this breaks down and clears the 50 DMA short to $38.25 is in play. Got the move higher on Wednesday to add on the upside move. Watch the risk as the downside move is potentially not over.
  7. Energy – (XLE) tested the breakout at $80. Followed through on Tuesday and looking for the defined leadership. This is a sector to dig in and find opportunities. XOP (break above $60.60) and IEZ (break above $59.30) both offer plenty of interesting stocks. The following are just a couple I am watching near term. NFX – The break above the $23.35 level is an opportunity. CHK – break above $19.65 is positive (accomplished on Tuesday – looking for confirmation). DO – break above $75 resistance. Look for the upside to follow through short term higher.
  8. Pattern Setups For Today: 1) CSCO – Trading range break and test – solid earnings on Wednesday upside break and run.  2)  CREE –  Test on the upside held. 3)  ORCL – Break above $33.95 resistance and fill the gap left on missed earnings. June 17th next earnings. 4) BSFT – cup pattern breakout at $25.70 5) UNG – bottom reversal? Need to see break above the 21.75 mark. (got it on Wednesday – follow through?) 6) AAPL – building a trading range and support at $420.. bounce?

Market continues to set new highs and money flow remains positive. This is a market you ride the upside and see what happens, but the longer it goes the downside risk that builds. Watch, manage and protect your money as this unfolds.