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Rally Gains Momentum. US Dollar Mixed. Short: AVEO; LULU; ARO; LONG: NSM

The rally continues; and our internal market indicators (three momentum; two trends) are positive. We expect higher prices, based on these indicators.

The short-term trend indicator (bottom row, left) turned down for one day and then turned back up on Friday.

We have been following the US Dollar counter-trend power very closely lately, expecting a dollar rally and a consequent downturn in stocks. So far we are still waiting. In truth, stocks have been rather flat since the Dollar seemed to bottom on last Wednesday. The two charts below show 1) US Dollar (UUP, Bullish ETF) vs. USO (US Oil ETF) -- a Dollar/Commodity record; 2) USD/ERU vs SPX (Pending:GSPC) showing the Euro Dollar's connection to stocks, the S&P 500 Index. A declining Euro/Dollar should be accompanied by weaker stock performance.

We'll watch this relationship a while longer to see if it is still in effect.

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TODAY'S TRADES

Good looking charts for both long positions and short positions:

The Trade Trigger in each of these charts is the black line in the top pane. When it touches the low of -10 (and when trends are negative), we short. (When the T11D Sunmarry hits +10, we look to go long, if trends confirm.)

LULU's most recent rally was feeble; and its most recent pullback did break earlier support.

(click to enlarge)Click to enlarge

AVEO looks even worse than LULU, in terms of broken-down support levels.

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ARO had a nice chart pattern interrupted -- ruptured really -- by earnings questions last week, shattering a bullish chart pattern.

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NSM suffered through a pullback last week, but recover and looks ready to

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    Trades for Trades for  
    MONDAY FRIDAY  
    13-Aug 10-Aug  
         
SEE PORFOLIO SUMMARIES BELOW    
         
TRADING SYSTEM      
ChartMeter 3      
(Intermediate-Term)      
         
SYMBOL CLOSE Today Yesterday Company
         
GNW 4.84   Exit Short Genworth Financial
GRPN 7.44 Exit Short   Groupon INc
HLCS 0.065   Enter Long Helicos Biosciences
ICN 20.43   Exit Short Indian Ruppee ETF
NG 4.29   Exit Short NovaGold
WPRT 36.81 Enter Long   Westport Innovations
         
* See chart        
         
         
TRADING SYSTEM      
T11D Sunmarry Cross 2ab    
(Short-to-Intermediate-Term)    
         
SYMBOL CLOSE Today Yesterday Company
         
AOBI 0.4 Enter Long   American Oriental Bioengineering
CYTX 2.66 Enter Long   Cytori Therapeutics
HOV 2.55   Enter Long Hovnanian Daily
IGOI 0.47 Enter Short   I Go INC
         
TRADING SYSTEM      
M2F ALT        
(Short-Term)      
         
SYMBOL CLOSE Today Yesterday Company
         
AUDNZD=X 1.3 Exit Long   Australian Dollar/New Zealand Dollar
DRR 49.96 Exit Long   Short (Double Short) EURO ETF
ENZN 6.71 Exit Long   Enzon Pharmaceutical
EUO 22.05 Exit Long   Short Euro ETF
LLL 70.39 Exit Long   L3 Communications
MA 426.03 Exit Long   MASTERCARD
TEVA 41.15 Exit Long   Teva Pharmaceutical Daily
^DJT 5,063.55 Enter Long   Dow Jones Transport Index
EURBRL=X 2.479 Enter Long   Euro/Brazilian Real
EURINR=X 67.946 Enter Long   Euro/Indian Rupee
GNK 3.5 Enter Long   Genco Shipping Corp
LNKD 104.92 Enter Long   Linked In
RENN 3.99 Enter Long   RenRen (China)
WPRT 36.81 Enter Long   Westport Innovations
CAAS 3.88   Enter Short Chinese Auto Daily
MWW 6.66   Enter Short Monster Worldwide
EXM 0.48   Enter Long Excel Maritime Carriers
AFG 37.56   Exit Long American Financial Group
AP4.SI 0.43   Exit Long RIVERSTONE HOLDINGS
FMCC 0.287   Exit Long Freddie Mac Daily
COW 27.93 Enter Short   Livestock ETF
BWLD 72.44 Exit Short   Buffalo Wings
CPA 76.66 Exit Short   Copa Holdings SA-A
CPF 12.98 Exit Short   Central Pacific Financial Corp
DWSN 21.23 Exit Short   Dawson Geophysical
SSL 43.17 Exit Short   Sassol Ltd S Africa
USDGBP=X 0.637 Exit Short   US Dollar/British Pound
XIDE 2.92 Exit Short   Exide Technologies
         
* See chart        
         
TRADING SYSTEM      
T11D Sunmarry 10/Zero      
(Intermediate-Term)      
         
SYMBOL CLOSE Today Yesterday Company
         
         
ARO 13.1 Enter Short   Aeropostale Daily
AVEO 8.66 Enter Short   AVEO Pharmaceuticals
BBY 19.21   Enter Long Best Buy Daily
BCRX 4.02 Enter Short   BioCryst Pharmaceuticals
CBI 37.21 Enter Short   Chicago Bridge and iron
CNTF 1.1 Enter Long   China Tech-Faith Wireless
CPHD 37.83   Enter Long Cepheid
DANG 5.38   Enter Long Dangdang E-Commerce China
EA 13.08   Enter Long Electronics Arts Daily
EXM 0.48   Enter Long Excel Maritime Carriers
FSLR 21.43   Enter Long FIRST SOLAR
FST 7.62   Enter Long FOREST OIL
LULU 58.72 Enter Short   Lululemon
MDRX 11.46   Enter Long ALLSCRIPTS HEALTH SOLUTIONS
NILE 33.01   Enter Long Blue Nile
NOG 16.78   Enter Long Northern Oil and Gas
NSM 25.63 Enter Long   Nationstar Mortgage
NVMI 7.91 Enter Short   Nova Measuring Instruments
RRGB 31.26   Enter Long Red Robin Gourmet Burgers
SCHN 32.41   Enter Long Schnitzer Steel Indust
         
* See chart        
         
TRADING SYSTEM      
T11D Sunmarry TRADE      
(Intermediate-Term)      
         
SYMBOL CLOSE Today Yesterday Company
         
AVEO 8.66 Enter Short   AVEO Pharmaceuticals
FST 7.62   Enter Long FOREST OIL
LULU 58.72 Enter Short   Lululemon
NILE 33.01   Enter Long Blue Nile
         
* See chart        
***********************************************
PORTFOLIO SUMMARY (UPDATED WEEKLY)  
         
TRADING SYSTEM ChartMeter    
(Intermediate-Term)      
Profit Active % Gain    
  Trades      
         
$30,748.00 28 10.98%    
         
TRADING SYSTEM T11D Sunmarry Cross 2ab  
(Short-to-Intermediate-Term)    
Profit Active %    
  Trades Gain    
         
$21,775.00 47 4.63%    
         
TRADING SYSTEM M2F ALT    
(Short-Term)      
Profit Active % Gain    
  Trades      
         
$6,570.00 111 0.59%    
         
TRADING SYSTEM T11D Sunmarry 10/Zero  
(Intermediate-Term)      
Profit Active % Gain    
  Trades      
         
$39,330.00 109 3.61%    
         
TRADING SYSTEM T11D Sunmarry TRADE  
(Intermediate-Term)      
Profit Active % Gain    
  Trades      
         
$52,287.00 18 29.05%    
         
         
Portfolio gains based on $10,000 investment per trade.
         
Click to enlarge

Michael J. Clark, Hanoi, Vietnam