Monday, June 25, 2007

Charts Of The Day

I don't have the time today to write lengthy commentaries, so I will just post some of the charts that I am watching with a few brief comments.



Gold and silver got hit today. I am long and losing about a dollar on GLD and 3 dollars in SLV. The red lines in the above chart show where my protective stops are.



Stocks were down again today with the S&P clearly going through its 50 day average but holding this month's low. The NASDAQ is stronger in my opinion based on the fact that it is still above its 50 day average and didn't even come close to testing this month's low. If the NASDAQ continues to show relative strength, I will buy a few NASDAQ stocks. As of now I am 90% short this market.




The reits and homebuilders were weak today even with the market up this morning. I'd like to cover half my position in the homebuilders if they hit the year low. Hopefully they will do that tomorrow morning.

Utilities were up slightly today. I'm going to tighten up my stops to lock in a small profit at the very least. In my opinion the utilities should have been down today along with the reits,homebuilders and the rest of the market but they weren't, this sets off a red flag and will cause me to keep my stops tight for the utility stocks.

7 comments:

stakeholder said...

Thanks Kev...read everyday.

Need to apologize for a post a week or two ago...my system went down halfway thru my comment and what got posted was not finished and read rather bad.

Wanted to explain that the accumulation/distribution of PKX my favorite steel stock had been falling thru the floor but the price had held firm and risen...so I shorted...doing well with that.

Shorted COF today as I think it will be susceptible to the prime worries and the price has a long way to fall if it does so...

just a note so you know people out here read and appreciate and USE your information.

Kevin said...

Thanks stakeholder

score22 said...

stakeholder, i have pkx on my watch list for some weeks, as steels have been rallying. what would be your signal(s) to (1) cover your short (2) go long. i just trade the same few stocks all the time.
kevin, thanks for all your simple but effective comments, i am learning an awful lot from your blog. why would you exit your homebuilder shorts now that they are working out great? hov, tol, len, all sliding down - is it better to trade just with a target in mind?
thanks.....

dps said...

Kevin, in a previous post you mentioned that you might try to pick up a china etf, like fxi or pgj. Just for kicks I was trading small quantities of spy and fxi, yesterday (I sometimes do this as a barometer). I began to notice a correlation between these two. In fact, upon further review, I found that there is a very tight - if not perfect correlation. I mention this because you noticed a correlation between bonds yields and equities last week. I was surprised to see such a tight relationship, here. Any thoughts on this correlation? Useful – or not?

As always, thanks for sharing your time and expertise with us!

Dave

Kevin said...

Hi score22,

I didn't say I was going to cover all my homebuilder short, I said I will cover half.

One thing I've learned is when you get a nice profit, you should take a little off the table and let the rest ride..

Kevin said...

Hi DPS,

If the correlation is tight, it can be useful but that relationship can fall apart.

Watch it for a few days and let me know if you find FXI as a leading indicator for SPY. No need to take my word for it....let the market tell you if it's useful or not.

dps said...

as it relates to trading I sometimes have trouble trusting my own judgment ;-) Will track and report back. Thanks!

Dave

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