The price and volume on Friday was not very eventful which means uncertainty in the market direction. I still think that we are due for a pull back going up 8 weeks and down only once. I am still short ACM, EDU, BIDU and have a few bear positions in QID, TYP but I also went long in two solar plays CSUN and TAN I bought on Friday.

CSUN chart is looking very strong as price comes down the volume dries up then on Friday it really dried up. I bought at $3.13. First target is 4.00, then $4.50.

I also looked at the overall solar stocks like FSLR, SOLF, CSIQ, STP and TAN (solar ETF). Solar sector looks good but CSUN looked better. I bought some TAN at $8.60 but I might be a bit early as it might pull back to $7.50-8.00.

I am still holding on a core position in DRYS which I took partial profits on March 27. On Friday it popped big time up +29% in one day. GNK also in the shipping business up +16%. DRYS is on it’s way up to $17 with little resistance with the huge sign on strength on Friday.

SPY has shown great strength during this short covering rally. I suspect we should pull back this week to around $82-83 where you can buy more if the volume is light. Then SPY will head up to $92.

The broad indexes fell on price but the volume was light which is what I am looking for. We want this to pullback and buy on a retracement.

I am still holding on to DRYS which went down on lighter volume. It’s in my buy zone and should head up to test $7.

I entered into UWM (Ultralong Russell 2000) which rejected the price and volume 3 days ago. My stop is under today’s low. Target is $17-18 range.

Entered into ANO also at $0.64, really nice up volume 2 and 7 days ago. I noticed the volume was really low as the price retraced - time to buy!!! Target is $1.10. Placing stop below $0.50.

The market is pulling back in an orderly manner which is to be expected in a bullish move. This is what I look for.

The URE pulled back more than I would have liked but it did so on lighter volume. Below is the IYR which is iShare Real estate index which the URE is based on. As you can see today we tested the high volume day on March 10. We went lower into that price range and closed above it which is bullish. URE is heading higher staying in the trade.

My FEED trade I entered yesterday acted great today reaching a high of +19% where I took some profits and raised my stop higher.

What a day with option expiration day on Friday. Even with this the market could not break down below the November 21 lows. Below is the SPY which closed above the low of the day which good. I am in SSO and QLD which are bullish plays. Note this is just a trade for a few days.

I’m still in AKAM which acted great and went higher on stronger vol.

The IYR (commercial real estate ETF) acted strong. I will enter the URE on Monday.

I like the action on AKAM today and went long. It had a nice breakout on Feb 5 and pulled back on lighter volume with a retest. Today is closed higher on stronger volume. $23 looks like resistance.

I also went long QLD and BGU.

In my previous post I sold my position in the TBT which is the short for the TLT (see chart below). The TLT looks like it still wants to fall down to 100 where there is good support. This means the TBT could run up to $52 then head down to $43 for a $9 fall. If the volume is light on the TBT at $50-52 I will short this.

Oil related stocks are holding well. I have positions in USO and PBR and HK. Below is a chart for PBR where I entered at $26 on the pullback to support. Its acting nice and should run up to$ 34-35 where I would sell if volume dies.

HK had a similar pattern as it pullback on lighter volume in the green circle and where I bought at $19.50. This should run up to $25.

Gold has had a great run the past 2 weeks and due for a pullback to $80-84 on the GLD. My miner stocks like DGP, RGLD, GBG, AUY, GG have had great runs +30-40%. I have sold most of the positions and will buy back on the pullback.

My caution radar is signalling that I should be getting nervous. The major indexes closed little higher but on lighter volume. I will watch the market and may go short buying the SDS, DXD and FAZ.

The TLT has fallen $10 in 6 straight days. I am short this buying the TBT entered at $38.99 and have a limit sell at $48. I’m currently up +17% in 6 days. This one has worked like a charm with the volume lighting I ready to sell. 

 

I am in DAG long agriculture. It retraced nicely back down to support at $9.00. I’m looking for this to climb up to $11 first then up to $14.

I have been following the crazy ride of the TLT ( iShares Barclays 20+ Year Treasury Bond) and it’s so way over bought. This article on Bloomberg also talked about  “Time to sell Treasuries“.  I thus entered into the TBT which is an inverse ETF of the TLT. As you can see from this chart of the TLT there is heavy down volume pressure on Jan 5. On Friday we just missed the high of the Jan 5 by $0.07 and closed to the downside. If we move down on more than 4 million shares and can break the $111 price we are fall further to $103 range.

I entered into the TBT on Thursday and have my stop just below the day low of $38.41. This should go to $42.96 first then…..up to $50 if the bond does breakdown.

I am still bullish on gold going higher into February as the US Dollar weakens. I am long AZK, ANR, DGP, AUY, GBG, GG.

Also bought on Friday for a quick play on TNA (Small Cap Bull 3X Shares) it is basically 3x leverage on the Russell 2000 which is use the IWM for the proxy. It was good to see another trader that I follow at Buying on the Dip also call this trade for TNA…….up up up we go to $40.

Gold was punished this week with the strength of the US dollar but that will be short lived. Gold prices went down but could not close below the breakout on Nov 19, see the chart below of the DGP (2x Gold ETF). On Friday I bought DGP at $13.20 and heading up to $16.46. I also have positions in AEM, RGLD, GOLD.

Also the financials XLF got inside the range on Oct 10 by closing over $12.79. The XLF should now make a run up to $16.53 and maybe up to the next swing high of $17.87. I am long the UYG (2x XLF RTF)