2/3 Watchlist

Despite the apocalyptic headlines on some market stories ("U.S. Stocks Falter"), the distance between the open and close in blue chip stocks (SPY) today is at this point measured in a few cents. Not much on a stock trading for 109.84.

It's not yet the end of the world. But remember, 2012 (a level hit by the Dow 23 years ago) may be just behind the corner.

So relax! Don't worry!! Be happy!!!

Treasury long bonds (TLT) have declined 0.6 percent today, open to close, after this morning's downward gap. The macd bear signal remains in place and has strengthened. Oil (USO) continues to show a bull signal, but has declined a bit during trading. The Japanese yen has strengthened against the U.S. dollar (USD/JPY) and stands three-quarter percent above its opening and shows a bull signal. The dollar against the euro (EUR/USD), deep in bear mode, showed a corresponding drop.

With the dollar's value on the decline, I would expect the price of gold (GLD) to be rising as a store of value. But instead, it has fallen half a percent open to current, but with a shortening macd bear bar (a bullish sign).

Among holdings, ERTS continues to show a bull signal as it trades at $17.23. This is an iron condor, so I want it to stay between $16 and $18.

Here's what's interesting in high-volume . . .


. . . exchange-traded funds:

• USO, which tracks oil prices,shows a weak macd bull signal on a higher opening that dropped back. The price is within yesterday's range, at $37.62. If it can break above $38.25, the next resistance is way up at $41.08, set on Jan. 7. Altogether, despite the wide swings, I'd have to call USO a sideways trend for the past year.
• XRT, tracking retail, also shows a bull signal, although it is trading down within yesterday's range. It's trading at 35.62 in a pretty congested pattern, with near-term resistance at $36.82. After that, the next major resistance January and November is around the same level. So, not much joy here.
• XLP, consumer staples, bull signal, open the decline, yesterday's trading range, blah blah blah. Congestion. It's trading at $26.83, resistance at $27.04, and the high on the one-year chart is $27.29. I see little upside here.

. . . corporate shares:

• WMT showing a strong macd bull signal on a rise to $54.42 spanning 1.2 percent open to now. Next resistance is at $55.20, and that's about as good as it gets, since the stock has been trading in sideways congestion since November last.
• DIS, a bull signal in the Magic Kingdom on a 2.8 percent rise from the opening to $30.76. Earnings are Feb. 9 amid lots of happy talk surrounding the Oscars and the Apple iPad. Resistance is around $31.15, and then $32.75, so there's potential in this protracted uptrend.
• ITUB shows a macd bull signal, but on a decline to the lower end of yesterday's range. It's trading at $20.03. Resistance at $22.52 and at $23.79, so there's potential. But the broader pattern is a downtrend -- lower lows and lower highs -- so it would be a countertrend play.
• TGT shows a macd bear signal, while trading at $50.62. Downside resistance is around $50.25, and it's pretty congested thereafter. So I don't think there's a lot of potential profit here.

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Topics:
S&P 500, SPDR, Spiders, Treasury bonds, high-yield corporate junk bonds, emerging markets, gold, precious metals, oil, petroleum, retail, consumer staples, Wal-Mart, Disney, Itau Unibanco Brazil banking finance, Target, CVS, pharmacies, drugs, Electronic Arts games, Moodys bond rating, Palm smartphone Pixi Pri.