Charts

The S&P hit 875 on Friday...where every possible resistance level was converging at. So as expected, we had a nice sell-off today. Market sentiment is still naturally split - it will take more than one down day to change anyone's mind. Almost everyone with a brain believes that this bear market is far from over; however, there is plenty of disagreement as to whether we see 700 or 1000 first, before heading lower. One thing that people can agree on, is that the market ran too far too fast in the last 30 trading days. At the moment, and given what is happening with earnings/guidance, I expect a more serious pullback. Now enjoy some charts.

SPY


QQQQ


VIX


SHORTS
TIE


OIH


WYNN


MMM


X


XOM


LONGS
TXN


USD



UUP

TXN holding on

Not for a second would I trust any level of support to hold these days but if I had to pick one stock that looked like it had a fighting chance, it would be TXN. If nothing else, it is setting up a low risk entry for a bounce - which we are becoming quite due for.


EVO - risking 0.60 (stop at 11.00) to make 3.00 (price target 7.50)

TXN - low risk setup

TXN is back to long term support and there's a descent chance it will hold for a short term trade (with a stop below the high 13s). Plus it has the added benefit of tech stocks being strong this week. Be conscious of earnings on the 26th.

In the intermediate term (1-5 months) there is no reason to believe that any support levels (not just TXN) will hold so consider going short south of 14 or if/once TXN starts rolling over - perhaps mid to high 15s where there is considerable resistance.

long-term TXN


short-term TXN

Setups

The following are several low risk setups worth considering for a short-term trade:

AKS


TXN


GLW


GNK


STX


RS


TIE


AAPL


PG


LLL


GOOG


BIDU