{+++} I will fully resume video next week for Sundays. The market is open 3 1/2 days this week, so I expect some intense gyrations and I don’t want to be too aggressive.
The focus now is on “the back nine” or the second half.
Here’s what I see. I think energy and coal will play well going forward and those are the sectors I want to emphasize going forward. We have some exposure in ACI, but I will add other names on dips. Walters Energy (WLT) is still running in mud and I don’t know why, but I think that could change to the upside soon. It definitively has the worst looking chart in the group so far.
I think we may be in store for a terrific summer rally as Europe (still leaking water) has at least optically been dealt with. Remember, perception is reality and if the masses think that that albatross has been removed for a while, it could lift the tape dramatically.
The wet blanket here is earnings. The season starts with reckless abandon in a week or two and the numbers will not be good. Europe has taken its toll on a lot of our companies and that should be reflected in their reports. There will be winners and losers as always, but that will be the general result.
You have to wonder though if some of these bad earnings reports have been discounted to a degree already, I guess we’ll find out soon.
The S&P was pretty much flat for the month until about 2:30 PM Thursday. Many have missed this move (many), so it will be natural for those who missed it to play catch up.
The greed dynamic should come out in full swing soon, maybe they are waiting for a pullback. If there isn’t a pullback though, then maybe the tape just goes parabolic.
I would like a pullback (not big) but good enough to enter some names a little cheaper (energy coal and others).
I have started the new July P&L this evening and have carried over some active names.. If anyone would like a copy of June just let me know.
Her are a few setups for this week. Please see the P&L foe the complete list of entries and stops.
LONGS:
AIG-32.35 entry
JLL-69-71
LNKD- 107.82 entry
MDVN- 87-92 level
QSII- 28.15 entry
SNDK- 37.65 entry
FORM-6.55 entry
ES- 1.72 entry level
ADSK- 36.02 entry level
Stops are on the P&L
Good luck this week
Joe