Patience

Fortunately I have the luxury of not having to be in the market every day...because most of the charts I'm coming across look like shit.

Remember, Chuck Norris doesn't sleep..... he waits.

Here are a few thoughts that should be self explanatory:

AKS

CELG

COF

FTK

GNK

GOOG

NMX

RIG

SMH

USO

VIX

X

SPY



Trading for a Living
A trendline is not a glass floor under the market - one crack and it is
gone. It is more like a fence that bulls or bears can lean on. They can even
violate it a bit without toppling it, the way animals shake a fence. A trendline
break is valid only if prices close on the other side of a trendline.

SPY | QQQQ | COF | CMG | UNH

SPY - It wasn't a coincidence that SPYs low was exactly 138.00. There is a lot of support at this level; however, there's a lot of resistance above too. If this support level fails, be cautious of your long positions.














QQQQ - also off its lows of the day. Use the trendline as a guide - if it can't hold...look out below.













A few candidates, should the aforementioned trendlines give way and the market decides to head lower...

Capital One (COF)
Chipotle Mexican Grill (CMG)
UnitedHealth Group (UNH)

Short setups

The bulls had a nice day today but I'm not feeling too optimistic...not after last week's breakdown. It seems like oil will continue to dictate market sentiment and direction. Be aware of the following economic stats this week:

Date	Time (ET)	Statistic
27-May	10:00 AM	Consumer Confidence
27-May	10:00 AM	New Home Sales
28-May	8:30 AM	Durable Orders
28-May	10:30 AM	Crude Inventories
29-May	8:30 AM	Chain Deflator-Prel.
29-May	8:30 AM	GDP-Prel.
29-May	8:30 AM	Initial Claims
29-May	10:30 AM	Crude Inventories
30-May	8:30 AM	Personal Income
30-May	8:30 AM	Personal Spending
30-May	8:30 AM	PCE Core Inflation
30-May	9:45 AM	Chicago PMI
30-May	10:00 AM	Mich Sentiment-Rev.

Pure speculation: In the very short-term I think it's reasonable for oil to pullback a little further and for SPY to climb back to 140 (or even low 140s). If any of this transpires I will be looking to buy Puts or Bear Put Spreads (aka: debit spreads) because I think more weakness is ahead and any pullback in oil will be temporary. I will also look at selling OTM Call Credit Spreads above significant levels of overhead resistance. Of course the market (SPY) could go straight to 132 without any more bounce so be cautious. Here are a few setups to note (click on company name or symbol to launch graph):

UnitedHealth Group (UNH) - bearish - may be on its way back down.

Apple (AAPL) - bullish - like AAPL to the upside. Use yesterday's low or the trendline as a tight stop.

Transocean (RIG) - bullish - use a very tight stop (see trendline) as the drillers have been getting punished.

Capital One (COF) - bearish - anxiously awaiting this lower trendline to be breached. Also, the fundamentals (i.e. tons of bad debt on the books) support a lower price.