Weekend Review | Pressure Relief Valve

Trade Anatomy Portfolio

+1.08% MTD | +.75% YTD

Position Summary

2 long | 2 buys | 0 sells

Watchlist Summary 

16 candidates

 

Commentary

Many times when the overall market is in a negative trending pattern, short duration swings mixed with strong price movements will occur to relieve some of the downward pressure.   They remind me of an air compressor relief valve used to draw out the air from the tank. The air spews out with a great amount of force, but doesn't last very long.  Although, the general market displayed some overall improvement, the proof that what occurred last week is more than a little pressure relief, will reside with a continued strengthening of the watchlist.   

For the 5th week, the S&P 500 held the 1839 trend line, but still remains in an overall negative trend.  I know many like to mark various levels as "do or die" type situations, but I find it more important to simply use the chart as a backdrop for what the current environment is presenting.  It wouldn't surprise me if we continued to rally or even closed below 1839 next week.  Whichever situation occurs, the key is still the same, which is to manage positions accordingly.

Gold

Gold still remains in focus for many traders and could offer further opportunity in the metal itself, as well as, the gold miners.  Below is the current weekly view of GLD.

As of the close on Friday, GLD is trying to work its way into the second tier (117-125), but might spend a few weeks bouncing around 117-111 before resuming an uptrend.  If GLD does move higher, then continue to look at gold miners for trading opportunities.  Below are several names and charts to watch.  Click to enlarge.

Trade Summary

Two trades were taken this week for members with a total portfolio risk near 1.5%.  Capital allocated was 26.70% and both trades remained on the plus side to put the portfolio up a little over 1% for the month and .75% YTD.   

Watchlist Summary

The main screen is far from overloaded, producing a mere 66 names to scan for potential candidates. I did bump the number on the watchlist to 16, but many names still need time to form more constructive patterns.  The two most impressive names are ORBC and FN.  Both continue moving higher with impressive price moves.  Below are a few to watch as the market unfolds.

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