Market Thoughts

The S&P 500 tested the 1500 psychological level today.  Upon testing earlier this morning there was a quick 10 point selloff followed by some buying into the close.  While the index is unlikely to close above 1500 today, strength in financials and retail indicates the market is not ready for any major sell off.

With my HD trade, there is continued strength and the only signals indicating sell are overbought technical signs.  Despite these signs, I am holding the trade playing the momentum.  While there are some interesting upside entries today in things like DDS, BIG, JCP, and other retail stocks I don’t want to put more risk on until I take some off with HD.  For those with a bearish trade disposition, there are some very interesting setups in the coal and steel sectors.  BTU, X, and other are showing significant weakness and I may look for an entry point in them tomorrow.  For now, I continue to ride with HD.


Posted on January 24, 2013, in Jeffs 3k-100k. Bookmark the permalink. Leave a comment.

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