Trading Notes for Today – May 1st

Technology continues to lead the way as the sector was the top performer up 1% on Tuesday. That is taking the NASDAQ higher which hit a new 52 week high and is the highest it has been since November 2000. Plenty of records being set, but the looming questions relative to the economy remain. Today may provide some answers as we begin to look at the April numbers.

Trading Note:

  1. The NASDAQ is providing the leadership this week as the technology stocks and Apple join the upside celebration. QQQ broke above $70 and provided another entry point on the test of the pullback on Tuesday as noted. The test of $70 early in the trading day allowed you add the position if you wanted.
  2. China continues to the upside after moving through resistance at the $70.50 mark on GXC. $73 target for now. If there is a test this morning back near the entry point it is still a position to trade.
  3. Emerging markets finally making a move higher. EEM the 42.80 entry point as well on Tuesday. Added to the ONLY ETF Model. If there is a test this morning you can still add the trade.
  4. Small Cap is still working through the resistance at the highs. Made a move late through the entry point of $93.85. IWM is still a trade for the break higher. This is one of the last major indexes to not break higher.
  5. Crude oil fell to $93 and looking for a follow through lower. If so, look for a short trade with DTO at $43.80. If there is a bounce higher, we will review the activity. Interesting to note the 1.3% decline in gasoline on Tuesday as expectations were announced for lower summer prices.
  6. Gold filled the gap and is not dealing with the resistance at the $143.50ish mark. Looking for a follow through on the upside. If we get the move look to add to GLD at $144.
  7. Gold miners should move if gold breaks higher this time. GDX at $30.60 would be attractive for a trade on the upside to fill the gap.
  8. Still looking for silver to join the upside move and fill the gap left from the selling. No real activity currently, but a move above $23.77 is worth trading.
  9. Some pattern setups for those who like technical patterns. ARRY (Pennant), DDD (cup & handle breakout), FOSL (double bottom), RL (trading range breakout), JPM (double bottom), OIH (downtrend channel upside break?). This market has been great for swing trades on pattern breaks.

Today is another day of data that will not matter. ISM manufacturing is the main point of interest for the economy. 50.5 is the expected report and that is not pretty at all. No expansion in manufacturing is not good for the jobs picture either. Construction spending and the ADP jobs report round out the news for the day. And of course at 2 pm the infamous FOMC meeting results.