Stocks...
DAX…10,770 is support. Sustaining and Closing below this level will lead to a sell off of a couple of hundred points.
11,000 was the tgt for this swing and is now resistance and the closing upside pivot.
Closes over this level is needed for higher.
EFA…64.98 is resistance @ the 200 DMA
DXJ...52.79 was a retest of the monthly ORL breakdown pattern. Fib resistance is a dollar high. All new strength is needed over 54 to start another leg up. This was one of the compelling reasons to take the money yesterday.
ORCL…sustaining over 44.25 puts this in buy mode. I’d be looking for a test of 46.70, the Dec. high.
BIIB.…remains firm over 397. The wave counts are app. 60 dollars higher.
IBB…329 will be pivotal the next couple of days. Above you could see another 25 dollars.
Bonds …
30 Yr. Bonds..(H) double topped overnight @ 145.07. This is today’s resistance.
FX…
EURO…114.50 is resistance and the upside pivot.
Commodities…
OIL…50.25 is first Fib support. Sustained price action under 50 is needed for another dollar down.
April (J) becomes front month. March expires tomorrow.
Gold…held a mid-week low for a bounce. Look for a test of 1222, first resistance. A close over 1233 is needed to turn sentiment bullish.
General Comments or Valuable Insight
Time will determine whether we get a small sell off in the Equity Indices or we just grind around and squeeze higher.
DAX..11,000 will be a key market tell.
It will be a stock rotation game with Energy & Banks under pressure and Healthcare and Tech in rally mode.
When trading the Indices becomes a battle of sectors it’s easier to just play the momentum names in the strongest sector than beat your head against the wall in a grinding Index trade.
PCYC...we got filled on these calls, we did not get filled in THRX.
PCYC was up after earnings, although it was not the pop I was hoping for.
We’ll just get out of these calls on the opening since there isn’t enough time until Friday expiration,to achieve our price target in the calls. Time will erode the premium in short order.
We’ll liquidate this position and move on.
…………………………………………………………………………………………………………
Current Positions…. Entry Stop TGT
LONG ZIOP 7.99 8.50 Close
LONG PCYC FEB 20 185 Call 1.15
LONG PCYC FEB 20 185 Call 1.15
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Working Orders…..
SELL another 30% piece of the original ZIOP position @ 10.90 GTC.
BUY 4 EPH5 (S&P 500 Futures) @ 2061 GTC
SELL PCYC FEB 20 185 Call on the opening.
