Busy and Bullish.

With a market rebound Monday, we have added four trend trades in bullish sectors out performing the SPY, as seen here.  It is worth mentioning that XLU is now ranked second on a  bull v bear ratio following XLV.  XLU( Utilities)  is thought of as a defensive sector, as Utilities generally deliver attractive dividends.  As money comes into XLU, we need to be mindful of  why the 'big boys" would be rotating into such a defensive sector. That said, we followed our rules of entry and added 3 long stock trend trades and 1 bullish option trade.  All of these trades  have achieved a "Very Bullish"  Chaikin Power Gauge Ratings, Strong Industry and Technical rating, in a long term uptrend and have a recent Chaikin Buy signal.   

* First trade, PRGO, Perrigo CO Plc. PRGO belongs to the top rated XLV and the Medical Products sector. PRGO has a very bullish power rating, with very strong insider buying, analysts opinion and estimate revisions.  PRGO is currently oversold on the Chaikin oscillator and flagged an Oversold Buy Signal.  We entered a full size trend trade at the open.  See all of our trades here.   

* Our second trade was FLEX (Flextronic Intl.)  also a trend trade, belongs to the XLK ( technology) which is also outperforming the SPY, which you can see here.  Flextronic has a Very Bullish Chaikin Power Gauge rating, excellent analyst opinion, strong estimate revisions and very little short interest.   The Chaikin Overbought / Oversold Oscillator recently turned up while in oversold territory and flagged a Relative Strength Breakout Signal.  We entered a FLEX trend trade at the open which you can see here. 


*  Our final trend trade of the day belongs to the XLI, which is also outperforming the SPY, however by a much narrower margin. We entered a position in LYB (Lyondellbasel - A) a chemicals company.  Once again, a Very Bullish Chaikin Power Gauge, very strong analyst opinion, virtually no short interest, strong technicals and belongs to a strong industry group.  Chaikin Analytics gave a Money Flow Buy Signal while at the same time falling well into the oversold territory on the Chaikin Overbought / Oversold Oscillator.  See our entry here.  

Lastly, we entered one bullish options trade.  We initiated a spread called a Bull Put spread. This is where you sell a put at or just below support, with action suggesting the stock will close above the strike of the sold put at expiration. It becomes a spread when, at the same time, we buy a put further away from the money as an insurance policy, incase the trade turns against us, capping our losses at the distance between our sold put and the put we purchased.   the name we are trading is BIIB (Biogen IDEC INC) which belongs to the top rated XLV.  BIIB met all of a criteria for trading, but, because the stock is over 350.000 per share we decided to trade options.   Again the strategy is called a Bull Put Spread.  We sold the APR 335 Put and collected a 8.30 credit,  at the same time buying the APR 330 Put as insurance for 6.70, which gave us a net credit of 1.60. as long as BIIB closes at or above 330 on APR expiration the credit is ours to keep.  You can see all of our options trades here.   

We have started tracking all Chaikin buy signals in bullish sectors.  We wont take every trade that makes it to this list, but will watch them until we either take the trade or feel they don't belong on the list any longer.   Most of the time we will be waiting for a bullish 10 / 40 EMA cross on both a weekly and daily basis before initiating a trade, if it meets all of our other requirements. You can see our bullish watch list here.

Happy Trading.  Mike & AA