The Energy Money Pit Provides Traders With Another Plus Day

it four straight plus days and has been positive six of the seven days in July

since the 06/30 1191.32 close. This is a gain of +2.6%. The Dow
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was off 6 points yesterday to 10,514 with the
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QQQQ |
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Nasdaq
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up with the
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OIH |
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finishing red yesterday, like the Transportation index ($TRAN), -0.7%, XLI

(industrial SPDR), -0.5%, and XLB (basic material SPDR), -0.3%. The
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was -0.6% and the US Dollar -1.3% to 88.35 after reversing at the 90 – 92

resistance zone. A decline in the US Dollar is never very good for the

multinational companies doing the largest percentage of their business on

foreign soil, regardless of their hedging activities. Check any of these kinds

of stocks on a relative performance basis to the US Dollar and you will see what

I mean. The RTH was +1.3%, while the semiconductors had another up day with the

days at 1.45 billion shares and the volume ratio 61 with breadth only +484 which

is not a real positive relative to the SPX 1222.21 close. The major index proxy

volumes were all close to their average volume number. Suffice to say, the 4 MAs

of the volume ratio and breadth are short-term overbought at 67 and +973. The

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SPY |
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volume after last Thursday’s initial London reversal day when the SPX and SPY

the magnet level being 123.25, which they will try to take out before any

decline. That also puts the SPY into the larger
RST zone, yet there is a smaller

one after yesterday’s high with the 121.64 low. Defer to the magnet 123.25 high

being taken out because if I was part of the PPT (Plunge Protection Team), that

S&P futures/SPY as the SPX traded in a contracted volatility pattern with just a

3.7 point range until a quick program breakout above 1220 on the 1:25 p.m. ET

bar which ran to the 1225.54 intraday high (see chart). However, the energy

stocks were daytrader’s gold once again. After the gap-up openings, many of

these stocks retraced below the previous day’s highs, then reversed those highs

to the upside which was a valid trade-through entry on stocks like the OIH,

add some random market action and it is also a Fibonacci ratio time zone, 07/13