Your Personal Trader - DJIM Journal 2011

The trend remains the same as ‘Inside the 20’ (SPX 1260 to 1280) gets churned and churned. Today, it was clearly the (see yesterday’s Journal) potential Headwind vs. Tailwind battle playing itself out. In all, the Shorts are unwilling to lay out more exposure near 1260 and ‘dip buyers’ take over. Still, the ‘Red Zone’ is providing trading oppy’s within DJIM’ Shadowlist.

Shadowlist

Momentum/earnings/“winners of ‘10 – Some CES induced carryover as SOX leads again. FFIV last week noted as ‘setting up’ had a nice >4pts day to NCH territory. Added EQIX back to the trading Shadowlist and it proceeded to have a nice afternoon adding ~2pts to get up to 2 month highs. Some squeezing was felt here, let’s see what a potential breach of $86 brings.
Commodities- LNN, an add following a gap down earnings report, covered it’s gap in a big way >6%/4pts. This despite a GS downgrade of Ag’s (CF/ AGU) halting the groups recent run.
Consumer- Retail looked better. Our list includes TIF, PVH, FOSL to trade if this has any follow through.
Miscellaneous- added an old favourite at DJIM, EBS following upped guidance that shows co’ is anticipating a ‘big’ gov’t contract.