Watchlist Saturday

Market Posture:

Dow: IT (intermediate term) Bearish and ST (short term) Bearish. The Dow rolled over with an Evening Star Reversal on Thursday and is now hovering in no-mans land between ST support and resistance and floating in the LT channel. There are no key economic reports until Thursday (GDP and ECI) and the most important aren't until Friday (Employment Report and ISM). Normally the two biggest economic reports of the month don't fall on the same day, but when the first day of a month is a Friday.....well then they do. There are some big name companies reporting earnings early in the week: Monday before the open - VZ, Monday after the close - AMGN, CF, MOS, Tuesday before the open - COH, CL, GM, NOV, NOC, SNE, X, VLO. Expect Chemicals, Steel, and Cyclicals to be movers on Tuesday. So the theme emerging for the week (especially if we don't get any news bogeys in Oil and Financials), is going to be earnings driving the early week and economic reports driving the end of the week. I will play the Dow and SPX for a potential drop on Monday, but then I'm standing back and watching how earnings drive the market on Tuesday. I usually put some supports and resistances on the Dow and the SPX, but I'm not going to focus too much on that until Tuesday day. I will play an intra-day put (if it shows itself) on the DIA and SPY on Monday and then stand back and re-assess when all the news hits the market Tuesday.

Here is the short term chart of the Dow:
(click on image to enlarge)


Here is the long term chart of the Dow:
(click on image to enlarge)

SPX: IT Bearish and ST Bearish. Not much to say about the SPX that's different from the Dow. I drew several short term supports and resistances so I can play the SPY tomorrow like I did on Friday. Same story as the Dow, we probably won't see a bigger move until Tuesday.

Here is the short term chart of the SPX:
(click on image to enlarge)


Here is the long term chart of the SPX. I'm not super excited about the Hammer followed by the Shooting Star, that's a little too volatile.....we'll see if it settles down:
(click on image to enlarge)

Naz: IT Bearish and ST Chop and Slop (you like that designation?...... ). The Naz is all over the place. I'm steering clear of the Q's for awhile.

Here is the short term chart of the Naz (ughh.....pew!):
(click on image to enlarge)


Here is the long term chart of the Naz (that's better, smooth out that chop and slop and now we can see an interesting potential Double-Bottom):
(click on image to enlarge)

Here are some interesting Bullish Movers or possible setups from Friday:

Manufacturing/Machinery: BUCY (note JOYG may change trend).

Coal: (still in downtrends with a few sideways trends like ANR and FDG, but the Coals are bouncing a little): MEE, PCX, ACI, BTU, ANR, FDG. I'm not playing them yet, but they are moving a bit.

Cyclicals: DHR, WHR

Retail: AMZN is pulling back a little
Drug Stores: MHS

Defense is interesting: GR, GD, LMT (remember that NOC has earnings on Tuesday)

Tech Services: ESRX (earnings coming up this week), IBM is pulling back a little

Biotechs: CELG and ILMN are still on the move

Healthcare: STJ and BDX look interesting

Note: NIHD is very strong, GILD may not be a put opportunity anymore - it's getting too strong, APOL is continuing to chug its way up, and JEC and BHI are worth watching.

Here are some Bearish Movers or possible setups from Friday:

Transports: CHRW (soon, maybe at 51), UPS, FDX

Cyclicals: TXT

Retail: RTH

Note: ZMH and GENZ (bearish gap).

I'll probably have a better idea on the direction of sectors and stocks on Tuesday through Thursday by Tuesday mid-morning. But then next Friday could change all that.....In the meanwhile I will probably play some little puts on DIA and SPY tomorrow (if it shows itself) just like last Friday. If the indexes turn and burn with a mid-week rally off of earnings then I may add an SPY and DIA Iron Condor to my existing Iron Condors.