We are adding more shares to TECL (technolgy 3X ETF) and FWLT (Foster Wheeler Ag- that’s one of their steam boilers on the left) after we send out this alert. Fwlt is one of our favorite oversold stocks in the power generation industry. Looking to sell put options on SSO (S&P 500 X2 ETF) into the close if we dip into negative territory. If you questions on options feel free to ask. The market is trying to decide if stocks can sustain the move they have had or if it is too late to buy in the short- term. Watch closely for updates throughout the day. We are at the beginning of an uptrending market folks. Questions?
Update 7:05 P.M.
Stocks ended flat on the day. After markets have big runs and there is no major pullback after, that is a bullish sign. So on any weakness today stocks were bought back quickly as traders tried to get in at any entry point they could. However, at the end of the day, some profit taking did occur. This was due to simple profit taking after a nice run coupled with the dollar(uup) (see: www.investopedia.com or www.yahoofinance.com for chart) being at support and should see a bounce tomorrow. Remember, the dollar moves inverse to the market. Also, although stocks are cheap, they are undoubtedly overbought at the moment and at a form of resistance. Wait for the bounce in the dollar (and therefore a pullback in stocks) before buying in. Don’t chase!
