Mixed Markets Mean More Mystery

• stevenplace
• May 21st, 2011

But What if You Look Under the Surface?

The week in equities left much to be desired if you are a directional trader looking for strong moves. The daily charts on equities seem to be undergoing a volatility squeeze, punctuated by strong liquidations intraday.

So while there is some confusion as to the overall direction of the market, this has led to some strong breakout setups under the surface. It’s best to monitor these to see whether we will continue in the context of the longer term trend, or whether we rollover from here.

There’s risk of a continuation of a dollar spike, but there are some divergences popping up in transports and copper. Further liquidations certainly would spur a change in the intermediate term trend, but if the market corrects more through time rather than price, we will be setup for higher levels.

In this Episode of Stocktwits Brunch, We discuss:

• the relative performance of smallcaps and defensive sectors
• how oil holding current support is bullish for the markets
• why the SMH is outperforming the SOX
• how $GLD can move higher even when the dollar doesn’t drop
• individual requests from the stream

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You can watch the show below:

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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