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StreetOne Technical Analysis, LLC 2/4/10

|Includes: FAZ, GLD, IBB, QID, The United States Oil ETF, LP (USO), UUP, XLF
                                                                   StreetOne Technical Analysis, LLC
Market Summary-02/04/2010
The Market traded in a narrow range, and closed mixed. The DJIA and S&P500 closed to the downside 26 and 6 points respectively, while the Nasdaq100 gained nearly 8 points. Volume dropped off somewhat. The Nasdaq100 continued its bounce off its recent pullback, while the DJIA and S&P500 continued to consolidate. We remain below 20 and 50D-EMA in all three indices. The DJIA and S&P500 remain above important support of9925 and 1070 levels respectively. The Nasdaq100 moved up off support of 1775.  The Financials (XLF), pulled back into its recent trading range closing at 14.40. Support now at 14.40, 14.30, 14.15, and 14.00. Resistance now at 14.50, 14.60, 14.75 and 15.00. GOLD(GLD) closed off .43 to 108.70.104.50-106 area is important support. It needs to get through 109.80 for any significant move to the upside. The VIX  moved up slightly to 21.60.
 
Trading Trend
Long term, we remain in a correction, below ten month trading channel and 50% retracement levels in the DJIA and S&P500. Short term, bias remains to the downside, with the Nasdaq100 trying to reverse this trend.  Near term, we had a mixed session, getting the consolidation that was expected.
Additional consolidation and weakness expected. Earning’s season continues this week.Today’s futures(at 8:15am) are slightly lower versus fair value. Economic growth indicators and U.S. Treasury funding have become the new key Market movers.
Major Economic Reports Today:
Initial/Continuing Claims-8:30am   Productivity-8:30am   Factory Orders-10:00am
 
MAJOR INDICES- Short term support and resistance levels.
DJIA-(close 10270)                       SP500-(close 1097)                 N-100-(close 1784)
 
    S                  R                               S                 R                              S                R
10270          10340                         1085            1100                        1775           1790
10200          10347                         1080            1107                        1765           1794
10150          10355                         1070            1108                        1758           1800
10000          10500                         1053            1115                        1742           1811    
 9925          10540                         1046            1120                        1735           1814
 9867          10650                         1035            1130                        1730           1820
  9850                                                                 1135                        1720           1840                             
 9762                                                                 1141                        1706
 9725                                                                                                                         
Options/Derivative Flows
"In UUP (PowerShares Dollar Bullish) we saw upside call buyers, specifically at least 25,000 March 24 calls. The ETF has been one of the strongest performers this year, up over 4% YTD. Our technician David Chojnacki was bullish at 22.40, early Dec. ‘09, and again on Jan.13th.” In USO (U.S. Oil Fund), orderflow has been bullish in nature recently, with buyers of March 39/42 call spreads as well as outright buying in March 40 and 43 calls. After trading near a multi month low last Friday, USO has bounced back strongly, to the tune of about 5%. "
 
Trade Ideas
FAZ(Financials Bear-3X)- Closed up 3% to at 19.10. Support at 19.00-19.10. Resistance at 20.15-20.30. Recently trading in slightly wider range of 18.25-20.50. Remains in a range. XLF pulled back into trading range.
IBB-(Ishares Biotech) Closed down .13 to 85.36. Some resistance near 85.75. More upside long term.  
GLD- Closed at 108.70. Held 20 and 50D-EMA. Has moved up off long term support(20 week MA) and may be poised for further upside if we get through 109.80.
QID(Proshares Q’s ultra short)-Closed at 20.45. Support at 20.40 and 20.10. Resistance 21.20 and 22.00-22.25.
 
 
   
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Disclosure: None