Connors’ Mid-Week Battle Plan
Our trading encompasses the philosophy that markets
move sectors, and sectors move stocks. Here are our thoughts for
the day:
move sectors, and sectors move stocks. Here are our thoughts for
the day:
Â
Market: Last night’s long bias signals for
today played themselves out nicely. We’re still full long the market and will
be looking to tighten our stops tomorrow, in an effort to lock profits in.
today played themselves out nicely. We’re still full long the market and will
be looking to tighten our stops tomorrow, in an effort to lock profits in.
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Sectors:Â The
(
$BKX |
Quote |
Chart |
News |
PowerRating) (Banks)
continues to show uncanny strength, and is leading the SP 500 higher. BKX 800
was a key battleground number, and since we pushed through this level, prices
have essentially moved higher with little if any resistance. The old saying
goes ‘ If the banks are healthy, the market is healthy”. The next levels to
focus on are BKS: 920, 880, and 860. Watch 860 in the next few sessions to
dictate short term momentum. If this level holds, the momentum should continue
higher. If we break this number, please remember that past support now becomes
future resistance.
(
$BKX |
Quote |
Chart |
News |
PowerRating) (Banks)
continues to show uncanny strength, and is leading the SP 500 higher. BKX 800
was a key battleground number, and since we pushed through this level, prices
have essentially moved higher with little if any resistance. The old saying
goes ‘ If the banks are healthy, the market is healthy”. The next levels to
focus on are BKS: 920, 880, and 860. Watch 860 in the next few sessions to
dictate short term momentum. If this level holds, the momentum should continue
higher. If we break this number, please remember that past support now becomes
future resistance.
Â
Stocks:
Citigroup
(
C |
Quote |
Chart |
News |
PowerRating): The lead dog in the group. This behemoth just broke its key
200-period weekly moving average. This is a VERY healthy sign. Bank Of America
(
BAC |
Quote |
Chart |
News |
PowerRating): Right there in terms of leading the pack alongside C. Keep an eye on
the price level of 77.
Wrap Up: Obviously, most money managers do
not believe this rally is for real, and they are locking in gains as opposed
to carrying positions. This is fueling further buying, and is fairly common
behavior in the early stages of a bull market.Â