If you are trading short term, the risks are better. For longer term trading, you need to trade with the trend until that changes and use wide stops and smaller positions.

Longs-
Cameco CCJ (ATR:.47) Unconfirmed Recovery Phase-so has to hold lows at 11.34 sitting on the 200 WMA so risk very clear. Look for an O.R. breakout over 11.83.

Existing Positions:

Cameco CCJ (ATR:.47)
***New Long at 12.03
Long at 12.03
Sell Stop 11.17
Target 1:12.60 move to no loss, but use at least 3 ATR target (13.47) to take profits.

NBEV New Age Beverage (ATR: .60).
Long at 5.10-5.25
Sell Stop: 4.23
First Target: 7-7.23 for ½

Second Target Reached!!
First Target Reached!
***CBS (ATR: 1.60)
Short at 53.20
***Lower Buy to Cover to: 52.17
First Target: 51.20 Hit!!
Second Target: 49.34 -Reached!

Cleveland-Cliffs CLF (ATR: .60)
**Stopped out at 8.64 and 8.37

 Short Mylan Labs MYL (ATR: 1.67)
Short at 34.60
Trailing stop: 31.54
First target to cover ½: 31.60 area REACHED!
Second Target: 29.50 REACHED!

If you have questions, please ask me on @marketminute my twitter account

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The almost 1 trillion-dollar farm bill was passed by Congress yesterday, but it was passed over by the markets as all the key indexes closed mostly flat.

The exception was the Russell 2000 I(WM), which was unhappy and closed down-1.41%.  This was strange considering the farm bill was designed to help the domestic economy and received approval from both parties (a rare event ).

On a relative basis, the trading ranges for stocks were relatively muted, most likely due to sheer exhaustion.

As Geoff pointed out yesterday the slope on the 10-day moving average on the SPY was up, but he wasn’t convinced that meant that markets were about to turn positive.

In fact, today the Russell 2000 made new closing lows for 2018, as did Retail, Regional Banks, and Transports. This shows further erosion in the underlying economic picture.

On a more positive note, the Dow Industrials seems to be holding the bullish hammer pattern from Monday’s brutal drop.

Tesla, which we highlighted here on Tuesday, continues its tear, powered by forces far greater than lithium-ion, such as human emotion and analyst upgrades. It is now approaching 385, which is the level it needs to obtain escape velocity.

A technical bounce is still a possibility as stocks are still short term oversold and the price action is compressing, which means the move either way could be huge, really huge.

Mish will be back on Monday after receiving her award from Real Vision. (I will let her tell you more about it then.)

S&P 500 (SPY) 269.40 is the number this must clear to improve outlook.

Russell 2000 (IWM) 147.50 is the number we need to clear to change our short-term perspective to bullish.

Dow (DIA) 233.20 is important support and the 2018 low made in April. And a close under 240.50 would make that more likely.  A close over 252 would be bullish.

Nasdaq (QQQ) Still needs to clear back over 168 to get positive for a mini to swing trade.

KRE (Regional Banks) This sector is in deep trouble and I would not touch it

SMH (Semiconductors) 86.95 recent low is key support on weekly charts and weekly pattern is looking ominous as a bear flag is forming.

IYT (Transportation) New low close for the year and support is much lower.

IBB (Biotechnology) 104.75-105 resistance with 100-101 major support. Currently only member of modern family with positive volume patterns and relative strength, but it better hold 100 or watch out.

XRT (Retail) New 2018 lows and sitting 200-weekly MA, which needs to hold, or a waterfall drop is possible.

GLD (Gold Trust) Sitting at the 200-WMA and right below the 200-DMA with 3 days of consolidation.

GDX (Gold Miners) Nice strong day and the highest close since August. 20.78 is the 200 DMA and resistance. 19.90 support

SLV (Silver) Needs to close over 14, and 13.58 pivotal support

URA (Uranium) Might want to look at CCJ

USO (US Oil Fund) 3 weeks of choppy consolidation, now with a very interesting bullish engulfing candlestick pattern. An O.R. Breakout over today’s high with a stop under 11 would be an interesting low risk trade.

TAN (Solar Energy) Inside day breakout, but a weak follow through. Look for a close over 20.60 to confirm a bullish move.

TLT (iShares 20+ Year Treasuries) Range to watch 118 support and 119.40 resistance.

UUP (Dollar Bull) 26.04-25.76 trading range

CANE (Sugar) eyes on futures over 13.20

DBA (Agriculture) consolidating between17.50 and 17.00

Bye for now,

 

Michele Schneider