Thursday, December 22, 2011

Surprise, there is a bull market going on....

Shame on me for not keeping a weather eye on my sectors lists, though an alert I set a while back did clue me in, but there is a nice bull market breakout going on right now in the XLU. Sure, utilities are your grandfathers stocks, but in this market, unless you are a savvy daytrader, trend following long setups have been in short supply. Check out the XLU:

Hey, maybe not the cleanest and most beautiful chart you have ever seen, but its something to go on for the long side. Check out DUK, one of the XLU components:

Compare the DUK chart with the XLU one. Notice how as XLU was setting up a nice flag under this resistance, DUK was leading the way. There are others like this in the sector, AEP and ED for example, and check out the day SD had. So utes are popping. Would have been smart to have noted the relative strength of the XLU, picked the ones near breakout, and maybe have got hold of a DUK or AEP. So the job now is to identify the best setups in this space, track the strength of the XLU during trading hours, and maybe you might get lucky. Might not be as poppy as biotechs, but following the bull always helps. Note that the XLU does have a history of false breakouts, at last resistance it popped and flopped, and I can even see another before that, so maybe this pop will need to fail once, rest, and then go. Time will tell.

Tuesday, December 13, 2011

...and more patience

Market is just flopping around like a fish. I am keeping it light and infrequent waiting for some conviction either way. I am not trading it well, but from the comments from the twitterstream to the Economist, very few are trading this well, so I am just not trading (much). I will post more when something is happening...