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Starting out with the S&P, we are sitting right at this support level starting at $1760. I think that is a very important support level and if it can't end up holding it, that trend line is likely the next stop. Another thing is that if that support level doesn't hold, that tells us there is a lot more velocity behind this down move than most think so I would keep that in mind as well. Aside from that though, the bulls did manage to get a close more than 50% off the lows which is another confirmation of how important that $1760 level is. Bonds and gold are starting to decouple as they were rising together for most of January. For bonds, I will be watching that round number 132'0 since there isn't really any support levels to pick out where we are at currently. Gold is starting to look weaker than most people think as it can't get above that key $1270-$1275 area. On top of that silver is just looking like it wants to head lower in the near future, so neither of those are a positive for gold, but that is the level I am watching.
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Internals are still saying that we will get follow through to the downside which is why I am being cautious on any new positions I am taking and on the market as a whole. The best argument a bull could make for the S&P percent of stocks above 200 SMA indicator is that it is a false breakdown and it will recover. Before making that argument myself I'd like to see it get back in that wedge pattern, so until then I am very cautious. VIX is still climbing higher as well. I don't know how well Yellen is going to be able to keep the fear out of the markets but for now it is still here. Markets trust Bernanke, and they really don't know Yellen.
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MSFT - Long from last week still performing great, still like it for a while.. new entries on pullbacks only
FB - Gotta be watching this one for long entries as long as the gap up holds
TWTR - Same as Facebook as long as the gap up holds
YELP - Coming off of support level as a long entry.. good trade location
YHOO - No setup yet, but good trade location to long side
CRM - Still very strong, been on watch list for a while.. watching for new breakout, new entries on pullbacks only
MMM - No setup yet, but good trade location for a long
NKE - Working on long setup off of support level & trend line
WFM - Holding gap up support for now, if it can continue will watch for long entry
CAT - Moving very fast right now, may have to be aggressive to catch a move here so will be watching hourly chart for long
FSLR - Still holding support here at $50, will be watching for breakout of $52 for long side trade
GMCR - Good breakout level at $82 along with good market structure to long side
SBUX - Still a falling knife but coming into good support level/trade location. IF a bullish reaction takes place, will be watching for long trade
CELG - Trying to hold onto $150 & bullish trend line, if it can it could end up being a good long side trade
X - Holding a long term support area, good trade location and market structure.. risk under $25
I understand this is a lot of long trade setups for a guy who is cautious on the markets overall. I judge each stock on it's own merits and only prefer that the general market moves with them, but a long setup is a long setup and I won't just ignore them because the overall market is looking somewhat weak. If you want updates on these symbols and new setups as they come along you can follow me on StockTwits or Twitter at @M5amhan.
Trade well,
-Michael
