Wednesday, February 19, 2014

Another Big Test

Here we go again. The NASDAQ 100 is at new highs and the S&P 500 is now in the zone approaching its old highs. Is another "V" shaped market bottom is about to be made, or is something more afoot this time?

Here are some interesting charts:

$SPX is approaching it's old highs after a low volume "V" type of bounce as if January never happened.  Options expiration is occurring this week. I am short SPX and long some stocks. But very short term in my trading.



McClellan Oscillators and Indexes overbought and summation lagging

 
 


$VIX What me worry?

 
 
Oil Prices going up - a head wind

 
 
Amidst the uncaring attitude of the investment community still lies the essential issues

1 - This is the slowest economic recovery in post WWII history. Blame the recent worsening on the snow or is something worse going on?

2 - We have had the greatest monetary stimulus in world history. Now the Fed may be boxed into tapering with nothing to fall back on.

3 - The USA has lost control of its foreign policy. Yesterday it was the Russian military pact with Egypt. Today it is more fighting in Venezuela and the continued Russian power play in the Ukraine and former USSR nations. Iranian war ships are headed for the USA coast and the Middle East is a mess. The Iran nuclear talks are a joke.

4 - The New Generals are the only big movers. How long can this game last? will they drag everyone up or are they an indication of a more narrow market that is on its last legs for now?

TSLA Tonight TSLA reports it's earnings after an absurd gap up in price caused by a media blitz about something that occurred with AAPL one year ago. I would not be surprised to see another big percentage gain in TSLA earnings, but the price is crazy, the battery supply issue still exists and companies like AUDI (per Doug Kass) are coming up with synthetic fuel alternatives.



PCLN is a true growth champ with a low PE and PEG ratio. Earnings are due out Thursday. A bit extended. I would not be surprised by anything great that this company does



Some Chart set ups

CSIQ being held back by a secondary at $37



PXD has the greatest reserves of any oil company in the USA. But it's cost of production is relatively high. As oil goes up in price, PXD is trying to come back. It is knocking on the breakout doors. One tell is that EOG, a company in similar circumstances, has already broken out. 

 
 
HIMX


Breakouts For The Nimble Traders

CCIH



 


HZNP


SCTY




BIG Capital Advisors and Seaview Partners are not responsible for your investment decisions. We believe very strongly in our opinions, but you must perform your own due diligence in making your investment decisions.

 
 
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