Market Thoughts

A few thoughts here as we approach mid day.  I’m starting to see A LOT of good setups cross my screens, but a lot of stuff is also way too extended short term to jump in here, along with the market as a whole, I will not buy things en force while those oscillators and momentum indicators are way overbought, I just won’t.

The Euro needs a rest, this could be the bottom, or not, who knows, but I know that it won’t go straight up like this forever, let it come back in and find support around 1.215.

It’s obvious from the action what is going on in this economy, just look at the charts.  Tech is on fire, the semis are leading this market once again.  The mobile revolution is upon us and the fundamentals all point higher.  Tech isn’t going down hard if Apple which is 16+% of the Nasdaq Composite is rallying like this.  Take a breath, wait for the pull backs, and buy these names.

I still don’t like energy, crude looks like it’s putting in a huge bear flag, look at the decrease in volume as we go higher.  It’s not a trade that I’ll play, but I think we’ll be headed back down towards 68.

Copper has resumed its downtrend, don’t complicate things here, the line in the sand is 2.7 on the $HG_F, below that and the global growth story looks cooked.

What I’m saying here is that we’ve got a mixed market, but there are pockets of growth the be playing on the long side.  I don’t think we are about to fall off a cliff, so wait for your setups, and strike.  Don’t chase the price action, I think we see a very choppy market through the summer and then maybe get some resolution in the fall.

I took a long position in $BRLI today at 23.75, the setup on the weekly and daily charts looks very nice, and the fundamentals with this one are strong.

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