What to Look for Now That 'Ideal' Setups Are No Longer Producing Big Gains
While the Dow remains above support and Italian and Spanish bonds creep higher, also keep an eye on DUG.
Under the surface, I’ve been noticing underlying weakness with ideal setups no longer producing big gains. With this I decided yesterday to book gains in recent names such as Molycorp (MCP) and a small loss in Avalon (AVL), the former looking to have stalled a bit and the later back below the key $3.00 level that interested me in the first place.
Investors should keep an eye on Italian and Spanish bond yields as both are creeping higher today, yielding slightly under 4%. With little change in the economics in Europe these bonds have been off many people's radar for a long time. Should we see further spikes higher in yields, look for this again to take center stage. With this I’m eyeing the UltraShort Europe MSCI ETF (EPV). It is early and I won’t chase today’s strength in the name but, on a retracement or better setup, I’ll enter long looking for more European weakness.
I am still long oil and gas shares ProShares UltraShort Oil & Gas (DUG) and that tactic is starting to work. Like EPV, I wouldn’t chase early strength but rather look for this trend to continue and buy pullbacks to rising moving averages.
Trade ‘em well today.
The information on this website solely refle=
cts the analysis of or opinion about the performance of securities and fina=
ncial markets by the writers whose articles appear on the site. The views e=
xpressed by the writers are not necessarily the views of Minyanville Media,=
Inc. or members of its management. Nothing contained on the website is int=
ended to constitute a recommendation or advice addressed to an individual i=
nvestor or category of investors to purchase, sell or hold any security, or=
to take any action with respect to the prospective movement of the securit=
ies markets or to solicit the purchase or sale of any security. Any investm=
ent decisions must be made by the reader either individually or in consulta=
tion with his or her investment professional. Minyanville writers and staff=
may trade or hold positions in securities that are discussed in articles a=
ppearing on the website. Writers of articles are required to disclose wheth=
er they have a position in any stock or fund discussed in an article, but a=
re not permitted to disclose the size or direction of the position. Nothing=
on this website is intended to solicit business of any kind for a writer=
39;s business or fund. Minyanville management and staff as well as contribu=
ting writers will not respond to emails or other communications requesting =
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.<= /p>