AGU - Agrium - Cup & Handle; V - Visa - Cup & Handle; Swing updates
Market action improved today. We gapped down on the indexes, and gradually pushed higher through the day.
The Ag group was showing relative strength from the open. I saw POT and AG gap up, so I looked for an entry in the group and found AGU.
While I used a wider stop than I would have liked with AGU, the trade still still had a good result. I would have closed part of the trade at the fib extension and let the rest run, but the market has had little follow through over the last 2 days. AGU pushed higher, but I didn't miss too much.
V on the other hand, had a better formed handle (more distinct volume contraction) which let me use a tighter stop.
Taking a look at the V chart, you can see how either a conservative or aggressive fib level would have worked. I tend to use conservative fib extensions (drawn to the generalized base of the cup, as opposed to the very bottom of the cup).
Seems like the commodity areas (oil/energy/steel/ag/coal/etc) & solars just roar on.
Quite a few steel stocks hit new all time highs / recent highs (X, SCHN, MT, NUE, GGB). I also like to include CLF in that space (although they are an iron ore producer). The price action in CLF today was amazing. They report earnings and miss by something like 40 cents & gap down as a result. Buyers stepped in and pushed CLF to new all time highs.
Speaking of steel stocks, I picked up MTL today as a swing, and keep an eye on AKS as it sets a new all time high just above 69.62. RS looks very compelling as well (although it has lagged recently, it has formed a nice base and breaking above 64 could really push it higher).
JRCC (coal) & JOYG (machinery) had similar price action to CLF. Speaking of machinery stocks, CAT looks like it wants to push higher and test its recent highs of ~85.50.
Current swing positions:
- Picked up AKS, MTL & IPI.
- I was stopped out of my DZZ today for a small loss.
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