The market Power Gauge Ratio continued to bounce from its low earlier this week, while the overbought/oversold oscillator dropped out of overbought territory. Sector breath continues to be narrow, with only 4 sector ETF's having a Power Gauge ratio higher than the market. However, Healthcare looks like a very attractive place to fish for buys.
The bottom line: with today's weaker than expected jobs report and Fed's tapering program, it will likely take a good earning's season and doveishness from the Fed to catapult the market to the next high. We're likely to chop around for a while. But, the uptrend is in tact, and we are waiting for our opportunity to take bullish trades on Oversold Buy signals in strong industry groups with Very Bullish Power Gauge ratings (and Money Flow Buys as well).
While we wait, fellow Chaikin Power trader Aaron Montell suggested this short term bearish trade on Noble. It takes advantage of weakness (both fundamental and technical in the Energy sector). He's also giving himself the chance to win if the stock stays sideways or even goes up a little. And, he's defined his risk through options in case that insider buying he's seeing turns into a big earning surprise. I like the trade, and it's the best way to be Bearish when the trend is against you.
Symbol: NE ( Noble Corp PLC) Oil Services
The bottom line: with today's weaker than expected jobs report and Fed's tapering program, it will likely take a good earning's season and doveishness from the Fed to catapult the market to the next high. We're likely to chop around for a while. But, the uptrend is in tact, and we are waiting for our opportunity to take bullish trades on Oversold Buy signals in strong industry groups with Very Bullish Power Gauge ratings (and Money Flow Buys as well).
While we wait, fellow Chaikin Power trader Aaron Montell suggested this short term bearish trade on Noble. It takes advantage of weakness (both fundamental and technical in the Energy sector). He's also giving himself the chance to win if the stock stays sideways or even goes up a little. And, he's defined his risk through options in case that insider buying he's seeing turns into a big earning surprise. I like the trade, and it's the best way to be Bearish when the trend is against you.
Symbol: NE ( Noble Corp PLC) Oil Services
- Money Flow Sell Signal
- Chaikin Trend-Down
- Chaikin SHort Trend-Down
- Overbought
- Bearish Power Gauge
- Weak Industry
- Weak Realative Strength
- Yellow Financial indicator
- Epert Opinion- red
- Revisions-Red
- Insiders-Slightly Green
- Earnings Performance- Green
- Options- 2-3 pennies wide
- Logged a Bear Call Spread at resistance, which is also Chaikin Short Term Trend.
- -37/+39 FEB14 spread. .61 credit 42% return on 36% risk
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