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Street One Financial LLC (S1F or Street One) is an independent entity affiliated with GWM Group Inc., a full service registered broker dealer and a member of FINRA/SIPC. Street One specializes in educating, evaluating and trading ETFs, equities and options. Our firm assists portfolio managers in... More
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  • StreetOne Technical Analysis, LLC Market Summary-04/26/2010  0 comments
    Apr 26, 2010 9:29 AM | about stocks: XLF, GLD, XLI, FXE, VIS, IYJ, IAU, SGOL

     Another choppy session, but strength in the PM pushed the major indices to new highs.  At the close, the DJIA was up 0.6%, the S&P500 up 0.7%, and the Nasdaq100 up 0.5% for the fourth straight session. Breadth was positive, 5 to 2 on the NYSE, with weaker volume in the DJIA and S&P, but above average in the Nasdaq100. For the week the DJIA was up 1.6%, the S&P500 up 2%, and the Nasdaq100 up 2.1%. In addition to the three major indices making new highs, the Dow Transports and the Russsells’ were also in new territory.  The DJIA crossed over its 200 week SMA, while the S&P500 is just below(the Nasdaq100 crossed in Sept. of 09). Near term support remains at 1200 and 2025 for the S&P500 and Nasdaq100. Next upside resistance remains at 1225 and 11254 areas(Fibonacci levels), for the S&P500 and DJIA respectively. The Nasdaq100 remains above the bottom line of its longer term upside channel(13 month). The Nasdaq100 is right at the upper limit of an importance resistance area: 2035-2055. The Financials (XLF), up .05 to 16.78.  Support now 16.75, 16.50, 16.30, 16.20, 16.00, 15.85, 15.70 and 15.50.  Resistance is now at 16.90, 17.00 and 17.15. GOLD(GLD) made a big push through 112 and closed up 1.2% to 113.19. Some resistance near 113.50 to 114, but a move through here could take it to test Dec 09 highs. Remains a buy above the 112 level.  The VIX closed up 0.9% to 16.62. 

     

    Trading Trend

    Long term, technicals remain positive as we remain at or near recent highs. Short term, upside bias remains as we make new highs.  Near term, though action was choppy, we moved through the recent highs.  The major indices are slightly over bought again, both short term and long term. The three major indices are right near important resistance areas.  Earning’s season continues this week.  Some Market impacting economic reports this week.  Today’s futures(at 8:15am) are slightly higher versus fair value.  Economic recovery confirmation(e.g.-employment, consumer spending) and interest rates have become the key Market movers.

     

    Major Economic Reports Today:

    No major reports scheduled.   

     

    MAJOR INDICES - Short term support and resistance levels

    DJIA-(close 11204)

    SP500-(close 1217)

    N100-(close 2055)

    11170

    11215

    1215

    1222

    2055

    2063

    11125

    11254

    1213

    1225

    2050

    2065

    11095

    11325

    1203

    1237

    2040

    2075

    11006

    11415

    1200

    1250

    2035

    2087

    11000

    11500

    1192

    1263

    2025

    2100

    10800

     

    1188

    1275

    2012

     

    10798

     

    1175

     

    2000

     

    10789

     

    1165

     

    1988

     

    10725

     

    1163

     

     

     

     

    Options/Derivative Flows

    In XLI (SPDR Industrials), options flows have turned from bearish to bullish recently. In previous recaps we highlighted downside put buyers in various months but last week there were large June 33 call buyers, with nearly 200,000 contracts purchased. XLI is up over 19% this year and trading at 52 week high levels. In FXE (Rydex Euro Currency Trust) a bearish looking put butterfly was bought, the 132/130/128 strikes specifically in May in good size. Separately, January 115/110 put spreads were bought and options buyers seem to be positioning for continued weakness in the ETF which is down almost 7% year to date and flirting with new 52 week lows. XLF (SPDR Financials) options have been no strangers to this report recently, and the trend continues to involve bearish/protective flow. Buyers of June 15 puts and sellers of June 18 calls in the June 15 put / 18 call risk reversals were around last week as well as assorted May put buyers.

     

    Trade Ideas

    XLI(SPDR Sel Industrial) Closed 33.12. Brokeout to new high above 32.62. Similar trade VIS(Vanguard INDL) and IYJ(iShares industrial)

    GLD-(SPDR Gold Trust)-Closed 113.19. Remains a buy above 112. Similar trade IAU(iShares Gold Trust). SGOL(OTC:ETFS)- Closed at 115.37. A buy above 115

    S1F In the News: http://www.streetonefinancial.com/news.html.

    This communication is not intended to constitute any offer or solicitation to buy or sell securities. All trading and broker dealer services are through Emerging Growth Equities, Ltd (EGRO), Broker/Dealer and member of SIPC, FINRA (www.egequities.com). For more information, please contact us at: 877-782-8353

     

     



    Disclosure: No positions
    Stocks: XLF, GLD, XLI, FXE, VIS, IYJ, IAU, SGOL
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