The bulls keep running

Although we made new highs in S&P and Nasdaq, today was mainly consolidation. The morning dip was bought once more. Same old story from the last couple of weeks.
The trend is still in play and no use in fading it just yet!

The S&P went higher early on, almost touched the premarket high and then dropped rather fast. But I already indicated that the dip was bought as usual. And the bounce brought price back near the high of day (and for tech even to new highs).

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Metals were resting today, taking a breather after yesterday's action.
Oil on the other hand surged to the magical number 100 and then pulled back to find support on 98. There it bounced back to 99 (round numbers every time, technically it worked great today)
The euro mainly traded sideways. Early in the day it even went higher for a while.


Trades
When oil - crude light - bounced on 98, I went long USO (oil-ETF), in 37.81, out just under 38 (crude light was near 99). I left a small part on, just in case we ran higher. That didn't happen, so I went out the last part at 38, not willing to hold any overnight risk.


Articles for tonight:
Energy, Utilities and the S&P500 - Hint, They Are Related
The Elusive Correction Is Taking Place Under the Surface
Where Are We in the Market Cycle?
Is It Time to Play Some Defense?
Has China Bottomed?

Market near support-area

Most indices hit a certain support-area, for most it was 20MA & 50MA. We didn't really get a big bounce, so it's difficult to say what markets will do from here on. Maybe tomorrow will give us a sign what to look out for next.

Swingtrades
I tried several support-trades, all mentioned in the HCPG-newsletter; CSX, NSC, FISV, CNX and BTU. After the initial bounce, all came back down, some stopping me out and others I scratched after market kept creeping higher but the above mentioned stocks kept hovering near my entry-point. CNX and BTU sold for a loss, the others near breakeven. I also tried a support-trade in USO which eventually worked, but after I raised my stop to just under breakeven, I got stopped out when crude oil (one of the biggest losers of the day, almost 4% down!) re-visited the previous low.

Daytrades
Two daytrades in one stock today: CL. Not the stock you expect to make big moves, but the stock moved beautifully with big volume. My exits were rather too soon, not completely following the Fib-levels I wanted to exit on (not depicted on the chart). Entry after a pullback on the 9EMA and just above R3.

My second entry was less successfull. I got in when two hammers appeared on the 15m-chart. Price immediately reversed and stopped me out...

Consolidation

The markets spend the whole day in a tight range, consolidating and digesting the recent move up. We're still not getting the pullback many are expecting here. The longer this consolidation takes place, the better this will be for the bulls.
Oil went up 2% overnight and precious metals also did quite well today. The semi's (SMH) are still getting rejected by the 35-level, this now for the fifth day in a row.

Swingtrades
I closed all my swingtrades on the morning strength, expecting the rally would not last with resistance just above.
Although oil and silver were doing great, I closed EXK and USO as well, happy to take good gains here.
EXK: long 9.49 - closed 9.88 on average (10 was my first target, close enough)
KLAC: long 47.95 - closed 47.76 for a small loss
N: long 28.95 - closed 29.14
SRX: long 28.34 - closed 28.54
PCX: long 25.63 - closed 26.06 on average
USO: long 41.97 - closed 42.34 on average


Mostly small gains (except for KLAC and EXK), but I'm not going to take any more risks for now. More swings will follow when market has given more clues about direction. Still long CHK with loose stop.

Daytrades
One daytrade today: CIEN. In after the bounce from the 9EMA on the 5m-chart. Out partly after a quick pop up on big volume. I left some shares on, in case the stock would regain strength, but unfortunately that didn't happen. Stopped out breakeven on the remaining shares.

Running into resistance

The S&P gapped up and slowly crawled higher until it hit resistance near 1330. The Dow even managed to come close to it's February highs. Gold and silver gapped up with the market but soon reversed, ending the day lower, but well of their lows.

Swingtrades
After scanning my watchlist I found a lot of bullish action and I deceided to put on some swingtrades. But with markets overbought and running into resistance, we need some consolidation. In hindsight, maybe it would have been better to wait for a pullback.

Here they are:
EXK: long 9.49 (PM) - SL8.85
KLAC: long 47.95 - SL46.50
N: long 28.95 - SL28.35
SRX: long 28.34 - SL27.50
PCX: long 25.63 - SL24.55
USO: long 41.97 - SL41.30

Stewie also went for a swingtrade, CHK @34.35 with SL32,00.

Daytrades
Three daytrades: BIIB, FRX and SRZ.

BIIB: in after price bounced on the 5EMA on the 15m-chart and broke the high of the previous bar. The stock based under 72 for more than half an hour. Then price shot up over 72 on big volume, only to drop without warning for over 40 cents in a matter of seconds (also on big volume)! Luckily I already moved up my stoploss, so the loss was still considerable. 5m-chart here:

FRX: in after price bounced from the 9EMA but price was still too far extended from the 20EMA. I should have passed on this one! Thru stoploss, over and out.

SRZ: the stock kept creeping up with support of the 9EMA. In on the break of HOD and moving my stop along. Then price fell thru the 9EMA, touched my stop and bounced on the 20EMA. Out with minor gains, only to see price go thru 12.40 EOD. Ouch...

I was watching CTXS when the 20EMA caught up with price, but I didn't take it. I thought I would wait for a pullback, but that never happened. Too bad, this was a huge winner. Up a dollar or more with a risk of merely 30 cent.