So You Think…

• We’re about to experience a major pullback.
• Like those animals that like to eat honey and get stung by bees on a daily basis.
• You should be short.

And so, with all of this said, you’re obviously not looking at the indices on a smaller than daily time frame:

$DJI 10 Day, 15 Minute

$SPX 10 Day, 15 Minute

$COMPX 10 Day, 15 Minute

$RUT 10 Day, 15 Minute

Is there evident weakness in the $COMPX and $RUT right now? Of course there is. Is that something to trade cautiously? Of course it is. You can’t, however, base all of your decisions off of the NASDAQ and the index that follows Small Caps. If you remember, earlier this week I was BEGGING all of you to watch yourselves when it came to a China-Tech breakout. China broke out, and Tech failed to do so.

This means (and has meant in the past) that the markets normally experience a slight PULLBACK, not a major CORRECTION. The weakness in the $COMPX scares me, but it does not make me worry a large amount. Until we break down below the multiple support levels on the $SPX and the 555 spot on the $RUT, we are still in pullback mode - this allows you to cautiously trade tickers whose technicals still look like they could breakout.

With that being said, the following ten tickers are my favorite from a technical perspective going into the Employment Report tomorrow @ 8:30am - Enjoy:

NGD 1 Year, Daily Ascending triangle price pattern, great volume breakout - Watch for continued strength.

HERO 9 Month, Daily Potential “Bump ‘n’ Run” trade with overall volume decline - Watch for 4.25 price support, 50d SMA, and ascending trend line support to all hold on a continued pullback.

EK 6 Month, Daily Bullish flag price pattern on low volume distribution - Watch for price and volume reversal.

ARM 9 Month, Daily Bullish flag price pattern on low volume distribution - Watch for price and volume reversal.

ETFC 9 Month, Daily Bullish flag price pattern on mixed volume - 50d SMA holding while 5d SMA and 10d SMA fight to see who will cross above who (Price consolidation)

HEB 6 Month, Daily Short term descending triangle price pattern wiith heavy support around 2.00 - Watch for momentum shift (5d SMA cross above 10d SMA) amidst this low volume price pullback.

JAZZ 6 Month, Daily Bullish flag price pattern on extremely low volume distribution - Expect continued consolidation until momentum in the Healthcare sector begins to pick up again.

LINTA 1 Year, Daily Ascending triangle price pattern with a resistance breakout above 7.34 on a huge volume spike - Expect continued strength.

PRGN 9 Month, Daily 5d SMA cross above 10d SMA caused an intial pullback to the ascending trend line support, but expect the support to hold and some heavy volume accumulation to occur in the next week (Resistance @ 4.95)

JASO 9 Month, Daily Tightening ascending triangle price pattern with resistance @ 5.55 - Soon going to explode with momentum if the 5d SMA cros

And there you have it folks, your top ten tickers going into tomorrow. Before I depart, allow me to grace you with a position update with some position charts:

TSTR 6 Month, Daily MUST hold on to 50d SMA in order for me to continue to hold - Volume does not exist.

URRE 9 Month, Daily MUST hold 1.00 price support or, preferably, the 100d SMA in order for me to hold on to URRE - Again, volume does not exist.

I will be traveling Friday, so unless my AirCard works on the plane ride back to Pennsylvania, I will only be on in little spurts during the trading day. I will be on during the open to manage my URRE and TSTR positions depending on what happens during PreMarket with the Employment Report.

Enjoy your morning everyone!

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