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StreetOne Technical Analysis, LLC Market Summary-03/08/2010

|Includes: GLD, IWM, QLD, QQQ, TNA, TWM, UYG, Financial Select Sector SPDR ETF (XLF), XOP

 The Market gapped up at the open, reacting positively to the employment report and maintained that strength through the session, closing near the highs of the day. At the close, the DJIA was up 1.1%, the S&P500 up 1.4% and the Nasdaq100 up 1.5%. Breadth on the NYSE was 5 to 1 positive, and volume increased over recent sessions. For the week the DJIA gained 2.3%, the S&P500 up 3%, and the Nasdaq100 up 3.8%. All three major indices are now positive for the year, and are nearing their highs set in January. Russell 2000 has set 52 week closing highs in the last two sessions. We moved through the recent congestion area and should test the January highs. The Financials (NYSEARCA:XLF), closed up 1.9% to 15.22, and broke through its descending trend line. Support now at 15.10, 15.00, 14.75, and 14.60. Resistance now at 15.25, 15.30, 15.40, and 15.75. GOLD(NYSEARCA:GLD) traded near 111.75 and pulled back to close off just .02 to 110.81. Support remains at 109.80. Next resistance at 113-113.50 area.  The VIX made a new 52 week closing low, moving down 6.9% to 17.42.

 

Trading Trend

Long term, technicals remain positive and intact. Short term, broke through recent range to the upside. Expect to test January highs. Near term, look for more strength to the upside.  Today’s futures(at 8:15am) are mixed versus fair value. Economic growth indicators and U.S. Treasury funding remain the key Market movers.

 

Major Economic Reports Today:

No major reports scheduled

 

MAJOR INDICES- Short term support and resistance levels.

DJIA-(close 10566)  SP500-(close 1138)   N100-(close 1888)

 

    S           R                  S         R                    S          R

10540    10650            1135   1143              1880     1900

10500    10725            1130   1150              1875     1913

10401    10820            1120   1155              1863     1920

10355    11000            1116   1160              1850     1935   

10348                          1115   1175              1845     1950

10318                          1108   1180              1842     

10200                          1104   1200              1840                                                     

10150                          1100                         1830                 

10000                          1089                         1825  

 

Options/Derivative Flows

In XOP (S&P Oil/Gas Exploration) we saw buyers of 5,000 April 42 puts which is a good sized trade in the name. XOP has bounced over 7% in the past 7 sessions, so these option buyers are probably looking for near term weakness. In TWM (ProShares Ultra Short Russell 2000), we saw opening sellers of the March 21 and 22 calls. Since this ETF tracks 2 times the daily inverse returns in the Russell 2000, these call sellers are making a bullish call in the market, and positioning for more near term upside. (Note: See Recent Calls below) 

 

Trade Ideas

XLF(Financial Select SPDR)-Closed 15.22. A buy above 15.10. Similar trade UYG, buy above 6.15.

GLD(SPDR Gold)-Closed 110.81. Remains a buy above 109.80. Resistance at 113-113.50.

Recent Calls

IWM-(Ishares Russell 2000) Closed at 66.62.. Up 5.7% since 2/22 call. New 52 week high, also in the underlying. Support at 64.85. Resistance at 70.  TNA(Direxion Small Cap 3X), Closed at 51.50. Up 17.6% since 2/25 call.

QQQQ(Powershares-Nasdaq100)-Closed at 46.44, up 4.1% since 2/17 call. QLD(Nasdaq100 2X leverage)Closed 60.67, up 8.3% since 2/17 call.

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www.egequities.com). For more information, please contact us at: 877-782-8353


 



Disclosure: No positions