Trader MD

On Friday I was fairly busy and in the time I spent in front of the screens I didn't see much. I added some RIMM Aug 105 puts.

Had a fairly busy weekend and didn't get enough chart study in on sunday night before crashing. I ended up closing my RIMM Aug 105 puts for a slight profit as I didn't really like the way it was acting. My stop was a move over 120, but I figured it was better to close it.

Today was just as bad if not worse than yesterday in terms of being tired. So I ended up using this morning to catch up on sleep and I think I'm now good to go. Instead of looking for trades this morning and when I had time through out the day, I ended up scanning daily charts and I picked up some USO about midday and RBN at the close.

I think the market is looking good on the near to intermediate term here. The $COMPQ / $RUT look like they are putting in a higher low or cup and handle type bottom. The $NDX is putting in what looks like a rounded bottom, and the $SPX is putting in a higher low / tweezer type formation on that higher low. Of course none of these patterns have been 'validated' yet.

Sectors that appear to be looking good: Steel (aside from MTL), Solars (appear to be setting up to run again), and Rails.

Mixed Sectors: Agriculture (AGU looks to be putting in a bear flag, CF has maintained its symmetrical triangle and is looking like it wants to break out to the upside, TRA has held up fairly well), Chinese Internet Stocks (BIDU looks solid, where as SOHU/SINA look neutral/negative) and Coals (FDG WLT ACI MEE; CNX & FCL don't).

Posted by Trader M.D. at 11:01 PM 1 comments

Labels: Coal, Index, Oil, RBN, RIMM, Sector, Solar, Steel

My logic?

We're basically putting in a negative divergence. Crude oil has made new highs or essentially stabilized around those highs, yet most energy and alternative energy plays have not.

Take a look at the drubbing solar stocks have been taking over the last few weeks. They are basically energy related plays.

Other alternative energy plays have began to break down as well. Wind stocks come to mind and of course, look at the coal stocks getting killed today.

Speaking of Coal stocks. As far as the daily charts go, these look like the 2 most promising short patterns.

Here's ACI (Box/Rectangle Pattern) & MEE (Double Top).





I have no position on either of these just yet, but will be looking for some type of a low volume kick back.

Posted by Trader M.D. at 8:26 AM 0 comments

Labels: ACI, Coal, Energy, MEE

Arch Coal, Inc (ACI) reports before the bell Monday and could help a few of the coal stocks highlighted below (FDG & MEE) break out.

Posted by Trader M.D. at 11:25 PM 0 comments

Labels: Coal, Watch List

First, the earnings (I'll be paying attention to the italicized ones; courtesy of Briefing.com):

• Monday: ALDN, ACI, BAC, LLY, GCI, MRK, NVLS, STLD, and TXN...
• Tuesday: AKS, BHI, CME, COH, LMT, MCD, NCC, PAS, UAUA, UNH, WU, BRCM, CREE, CYMI, NSC, VMW, YHOO, and YUM..
• Wednesday: AAPL, APD, ABK, ABC, BIIB, FCL, GENZ, SGP, BUD, AMZN, CMG, FFIV, NTRI, and QCOM...
• Thursday: MMM, MO, DOW, FLIR, MOT, NOC, PEP, POT, RTN, TASR, ZMH, AXP, BIDU, MFE, WFR, MSFT, WDC, and YRCW...
• Friday: AXL, GT, ERIC, and WEN.

Note: VMW, NTRI, CMG, BIDU, TASR, CREE and YRCW have significant short interests (a positive reaction to their earnings could accelerate quickly to the upside)

You'll notice there are quite a few coal, steel, semi

This week's economic reports are on the lighter side & there is no scheduled fed speak.

On to the indexes:

• Keeping a longer term perspective on the S&P

• The S&P daily

• The QQQQ daily

• The IWM daily

• The XLF daily

• The SMH daily

We've had quite a nice move up over the last week and we're probably due for some sort of a breather here. Another event that will make next week interesting is what happens of the YHOO/MSFT deal.

Things look good for now and I think that will continue, even if we get a few minor shocks along the way. Any unexpected major shocks could definitely change the course over the short to intermediate term.

Posted by Trader M.D. at 10:37 AM 0 comments

Labels: Coal, CupnHandle, Index, Recap, Semis, Steel

Coal itself is starting to turn up. The ETF is a bit thin for my tastes (less than 300k avg daily volume), but there are a lot of coal stocks acting well.

• JRCC broke out of a bull flag today
• WLT is on fire, like usual
• FDG closed at an all time high
• BTU, CNX, and MEE have started to work their way higher
• ACI is gearing up to move higher

Do be careful with coal stocks & possibly even trade smaller share size, as they can be somewhat erratic/choppy.

Posted by Trader M.D. at 11:49 AM 0 comments

Labels: Coal, Sector