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!!!

1/7 Watchlist: Yen signal; AAPL, CVS, ITUB on the scan

• Blue chips, Treasury long bonds stagnate. 
• USD/JPY signals. 
• Junk bonds up a bit.
• AAPL, CVS, ITUB on the scan.
  

No new signals on any indicator, and prices are quite stable, except for corporate junk bonds (JNK) which, as noted in the Morningline, continues to rise for the fourth day.

The yen per dollar currency pair (USD/JPY) continues to show the pps bull signal that appeared this morning. The chart is uptrending, with the steep pullbacks, from early December. For me, it's not a trade at this point. The yen peaked above the top set on Dec. 31, and promptly pulled back to the resistance point. I would consider going long the yen if the price closed around 93.4 or higher. Also, the macd, while in bull territory, is declining toward the zero line, and the stochastic has moved below the 80 line.

12/8 Watchlist

I've found one possibly decent trade, and that one ambiguous, after scanning all etfs and stocks with volume of 5,000,000 and up for pps signals, status of mfi confirmation by direction, and the trend.

The one possibility is AET, which showing a bull pps signal, confirmed by the direction of the mfi. True, the stock has been in a sideways trend since March, but the bull signal is coming at the top of a fluctuation cycle that has been running about a month measured peak to peak.

AET is not yet quit at resistance, and I want to see what happens. If the price breaks above 31.25, then it might be a trade a for me.

Here's the reject list, showing pps signals with status of mfi confirmation by direction and trend:

• SPY, bear, confirmed, sideways
• EEM, bear, unconfirmed, sideways
• MSFT, bear, confirmed, counter-up-trend retracement
  
• ORCL,  bear, confirmed, sideways
• MRK, bear, confirmed, counter-up-trend retracement
• HD, bear, unconfirmed, sideways
• XLI, bear, confirmed, sideways
• ITUB, bear, unconfirmed, counter-up-trend retracement
• DIA, bear, confirmed, counter-up-trend retracement
• PG, bear, confirmed, counter-up-trend retracement
• XLP, bear, confirmed, counter-up-trend retracement
• VWO, bear, unconfirmed, counter-up-trend retracement
• TWX, bear, unconfirmed, counter-up-trend retracement on news
• BBD, bear, confirmed, counter-up-trend retracement
• XLK, bear, confirmed, counter-up-trend retracement

I've rejected the sideways trenders (except AET, as described above) because they tend to be too short term for my purposes. My ideal options position will be short (i.e., I sold the options)  and will last for 30 days and trend in my direction, giving me a bump from both the price rise and theta decay.


I also rejected the counter-trend retracements, since my present strategy is to trade with the larger trend.

In today's scan, I gave little thought to mfi confirmation. There was just so much not to like that the mfi became irrelevant.

In my holdings:

HPQ has lost the bear signal it showed at the opening this morning and has barely budged during the day. So, no action appears necessary.

X is looking nicely bearish in line with my position.

UNG, at 0.46 above the strike of my 9.00 covered call, is showing a bull signal. For tomorrow I'll do  calculation of when (if) it makes sense to sell the call and retain the shares rather than waiting for exercise.

KO, in bull mode with a sideways price, remains at the top of max profitability of my iron condor.

The indicators -- SPY, VIX, TLT, GLD, EUR/USD, USD/JPY -- remain as described in the Morningline.