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StreetOne Technical Analysis, LLC Market Summary-04/06/2010

|Includes: EEM, GLD, IWM, TNA, UNG, Financial Select Sector SPDR ETF (XLF), XLV

 The Market opened positive, continued up for most of the AM session, then traded sideways,  finishing near the highs of the day. The three major indices all made new closing highs. The DJIA was up 46 points, the S&P500 up 0.7%, and the Nasdaq100 up 0.9%. Breadth was almost 3 to 1 positive, but volume was light again. After trading in a narrow range for the last eight sessions, it appeared like the Market was trying to breakout of this range. Need to see further confirmation of this. The Russell’s(1, 2, and 3000’s) also made new closing highs. The S&P500 seems to have put some distance from the 1175 resistance area, however the Nasdaq100 closed just above 1975 resistance. This last session removed some bearish near term signals. Any pullback should find short term support near: S&P500-1150, Nasdaq100-1920, DJIA-10725. The Financials (NYSEARCA:XLF), moved up 1% to 16.24.  The XLF has now retraced nearly 32% of its 2007(high) to 2009(low), still lagging the major indices. Support now at 16.15, 16.00, 15.75, and 15.40. Resistance at 16.30, 16.50 and 16.75. GOLD(NYSEARCA:GLD) gapped up once again at the open and held for a 0.63 gain to 110.89. It remains in recent trading range of 106.50 to 112. The VIX lost 2.5% to 17.02.    

 

Trading Trend

Long term, technicals remain positive as we continue to trade at or near recent highs.  Short term, upside bias continues. Near term, new highs in the major indices and possibly breaking out of a recent range. The last session improved some near term technicals; look for confirmation. The major indices are somewhat overbought again short term. Today’s futures(at 8:15am) are down slightly versus fair value. Economic recovery confirmation(e.g.-employment, consumer spending) and interest rates have become the key Market movers.

 

Major Economic Reports Today:

FOMC Minutes-2:00pm   

  

MAJOR INDICES - Short term support and resistance levels

DJIA-(close 10973)

SP500-(close 1187)

N100-(close 1977)

10907

11000

1186

1194

1975

1981

10866

11025

1175

1200

1967

2000

10800

11125

1172

1213

1963

2012

10765

11254

1170

1225

1957

2025

10725

11500

1165

 

1950

 

10605

 

1160

 

1940

 

10579

 

1150

 

1935

 

10540

 

1143

 

1934

 

10500

 

1137

 

1920

 

 

Options/Derivative Flows(from the desk of P.Weisbruch)

In UNG (U.S. Natural Gas Fund) we continue to see interest in upside April 8 calls, which are 10% out of the money with only a few weeks to go until expiration. Last Friday, UNG traded below $7.00 briefly, its lowest level in years, before rebounding rather sharply.

For weeks on end, options flow in broad based products has been decidedly protective to bearish. Yesterday, in EEM (iShares Emerging Markets) we saw bullish combos trade, where investors sold the June 41 puts to buy June 41 calls, at least 30,000 times. EEM has lagged the domestic benchmarks like the S&P 500 (+6.56% YTD) and the Russell 2000 (+11.05% YTD) and is up a little north of 5% YTD. (see below)

 

 

 

 

Trade Ideas

IWM(iShares Russell 2000)- Closed 69.71. Breakout level-69.23. Similar trade TNA(Direxion Small Cap-3X leverage)

EEM(iShares Emerging Markets)-Closed at 43.61. Breakout level-43.20. Positive cross in MACD.

XLV(SPDR Health Care)- Closed 32.22, off .09. Pulled back after gapping up at open. Continues to be a buy above 32.00. Short term potential 34.00

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