More Americans than projected filed applications for unemployment insurance last week, indicating firings remain elevated as the recovery moderated.$SPX: Still the same picture on the daily chart, resting below cluster resistance over head. The Bollinger Bands have stopped widening from a few days ago.
Initial jobless claims climbed by 19,000 to 479,000 in the week ended July 31, the most since April and exceeding the highest estimate of economists surveyed by Bloomberg News, Labor Department figures showed today in Washington. The number of people receiving unemployment benefits dropped, while those getting extended payments rose.
The 60 minute chart below reflects a little grinding sideways. If the August 6th or 9th time frame is a right shoulder this sideways structure supports a solid move tomorrow if we are to test the upper wedge line at 1141 in the next two days.
$VIX: Still stuck inside the coil. Should be a big move coming soon.
IBM: Will IBM test the upper price resistance and fail with the market in the next couple days, or power through and help drag the market higher? should know soon.
JNK: It tried to roll a little today but not so for now. Still has a little more upside
XLF: Still a little consolidating going on. Bollinger Bands beginning to narrow and the daily MACD looks weak. Again, we should know soon.
Tech Stocks:
AAPL: Haven't got a clue what's going on the past few days. Lifeless.
AMZN: Nice bounce over resistance. Stock is on the verge of moving higher which should force the Bollinger Bands to widen. RSI supports more price gains.
BIDU: RSI at over bought, but no divergences on the MACD. Looks like at least a little more upside.
PCLN: Very strong move. Price has pierced the upper band by a lot. It's do for a little rest, but it should continue higher after any resting structure.
My Watch List: JNK above is still on the short list.
TGT: Looking for price to push higher and widen the Bollinger Bands for a long side trade. MACD trying to turn higher.
WMT: Just waiting to break above the down trend line. RSI tends to support that move.
HPQ: A little wedge formation. So far, it looks like a bullish pattern, but the MACD has to pull up and soon.
PFE: Just like KO and a few others, it jumped over the down trend line on good earnings. Still looks good. The next two targets at the 200 day MA and price resistance above that level.
SRS: Tried to make a little move, but I still think we need a little more downside work to pinch the Bollinger Bands. As a trade goes, I want to see it above prior price lows in blue, and the recent down trend line in red.
BRCM: Possibly a little H&S pattern forming right on top of support. If so, a little 1-2 day pop then drop. Wait for it to move below support as confirmation.
CAT: In the price area of resistance where the fade trade is viable. RSI over bought. Bollinger Bands tightening.
From My Trading Desk: I can't believe I'm going to say this, but we made two trades today. First, we took a half position short on UNP. We doubled our position on LPTH.
UNP: The stock has declining volume on this rise into significant resistance. I'm a tad early, or at least it feels that way. I'm usually early just so you know. A couple more days is expected to exhaust itself.
Speculative Trade: LPTH is one of my two spec. trades.
LPTH: Good move higher today on good volume. RSI bouncing off the 50 line. MACD trying to turn up. We now have a 1/3 position. Still have to keep it light because this is a thinly traded stock, and I don't want exiting the position to be an issue.
Happy Trading
J.D. Rosendahl, Rosey