What a market! Economic indicators continue to show the economy is improving. The overall market sentiment shows no signs of weakness. The S&P ran up to the 1400 level today and pulled off that level; and it will be interesting to see if we can plow through this level as well. Looking at long term charts, it looks more like the 1405 level as being actual resistance area, but with the way the market has plowed through recent levels, we may run right on up to the 1425 area with ease. Watch now that i say that the market make a liar out of me and pull back. It wouldn't surprise me.
Took another hedge with the VIX tuesday at lows of the day. Glad i did and will hold this one for a while. Looking at JOY, but concerned with how hard it has fallen to its recent support. I will hold off on this one for now. Also been waiting for the transports to show any sort of sign that resembles bull; so far none. NSC is interesting, but a tight stop took me out a week ago; and will have to show me better signals this time. CF industries is a monster bull of a stock. Its time to take this one for a ride. I'll look for a good entry between now and the first of next week if the market permits. Other than those, CVX is interesting, but it needs to show me a good move above 112 so that i don't get stuck in the old range. Might add to CAT if it pulls back a little. Thats about it for now. Not going to throw up an S&P chart tonight; it doesn't take a rocket scientist to see what's going on there. The 1405 level will have my eye though; and 1425. If we pull off the 1400 level again i'll call that our next high water mark to clear and measure my risk reward as it relates to corresponding levels in different stocks from there (1400) to a downside support area of 1375ish. Happy trading everyone and take care.