Tze – 9:00 AM
The stock model is updated to reflect Friday’s market move. You can download the entire model Excel output file here: StockModelFile_20110826 Remember we do welcome individual stock and ETF commentary requests. All you have to do is submit your request or questions in the comments section of this post and we will promptly reply.
For 08/29/2011 trading session, we are going to focus long positions in F (Ford) and XOM (Exxon Mobil) in Charts are provided by contributor Roller Coaster.
Ford has a quintile ranking of 1 (best) in the auto sector. Ford looks like it is trying to hold around the $10 level. There can be a quick move up to try to fill the gap at about $11. The MACD is also ticking up. This stock’s contrarian indicator is very high relative to its peers indicating a rally is anticipated. In addition, the stock’s earning growth relative to its PE is significantly higher than most of its peers in the auto sector.
XOM has a quintile ranking of 1 (best) in the oil/gas sector. XOM has held the $70 level; and may now look to tag the 50 EMA, which is also near the level of the June 27th low. XOM is even more attractive based on its contrarian indicator and the stock is at a bargain price given its valuation related metrics.
ETF Model Update:
Given’s the market’s bullish move on Friday, the model has tilted even more towards the bull ETFs. However, it also provided better entry opportunities for the bear ETFs. For 8/29/2011 trading session, we actually favor one of these bear leveraged ETF – EDZ (Direxion Emerging Market Bear 3X). EDZ’s ranking has moved up from a neutral quintile ranking of 3 to a 2. We believe going long Ford (F) and Exxon (XOM) and hedge the two long positions with EDZ is a great combination.
EDZ is consolidating after it’s big move up, and break of the 50 EMA. The 50 EMA is now rising. EDZ may break the consolidation to the upside.
XOM – Up close to 2%
F – up over 3%
EDZ down over 6%
UGL making a pretty obvious H&S at the moment.
AGQ’s uptrend is pretty much intact. But if gold starts to tumble, silver will tumble even more because silver really got ahead of itself earlier this year. The gold/silver ratio is pretty strong at the moment. It’s hard to alter that ratio.
ES at resistance at 1200, but not reacting.
What do you think about Gold? Are you long or short Gold?
It’s hard to say. That H&S pattern on UGL is making me a little uncomfortable to jump into gold.
By the way, any progress on getting our new folks on board?
Still waiting for replies.
Many commodities and currencies breaking out of their trading ranges. ES should follow.
Agreed. Where is everyone today? Perhaps they are getting complacent