Stocks...
GOOGL… 554-550 is the low risk buy zone
NFLX…shows a potential weekly double bottom @ 470. Below, all the new longs will get run out.
PRU & CB… are two financials that put in ORH days yesterday.
As long as Chubb stays above 100 it’s ok. Pru, that # is 80.50.
I’d prefer to buy a break in the Financials than step out on strength.
Bonds …
30 Yr. Bonds…I was surprised by the ferocity of the break in the 30’s yesterday. I’m now of the opinion that the June 30 will eventually trade down to the 153-154 over the next few weeks.
Sell any good rally.
FX…
USD/JPY…price action under 119.52 (over 83.66 Futures) today’s OR# will run the weak shorts out.
Note the ORH # in the all session Futures sets up slightly different @ 83.58. Always defer to the cash level.
Dollar Index…”DXEH5″ isn’t backing off. Follow the Bonds…Bonds lower = DXE higher.
Commodities…
Natgas… needs sustained price action over 2.71 to show any strength.
OIL…49.70 is today’s support. Price action and a close over 51.25 resistance is needed for a move higher. Crude has been range bound for 5 weeks.
General Comments or Valuable Insight
The Financials put in ORH days.The past couple of times we saw this pattern they opened lower and regrouped for a couple of days before heading higher.That said, with the Bonds lower this A.M. you could see upside follow through.
Pay attention to the opening ranges today in the Financials.
WFC,C, & XLF should be on your radar for this week. A shallow pullback should provide the impetus for a late week rally.
I added 3M & INTC yesterday. Both are low volatility sleep tight names that can work.
I chose them simply off their patterns.
The Equity Indices do not have to move much with the action in the Long end of the curve.
Equities will be a pick your poison affair. With the Bonds down (Yields inching higher),
look to the Financials to react positively.
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Current Positions…. Entry Stop TGT
LONG EFA 66 3/06/15 Call .13
LONG MMM 170.50 167
LONG INTC 34.06 33.25
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LONG MMM 170.50 167
LONG INTC 34.06 33.25
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Working Orders…..
SELL 30 EFA 3/06/15 66 Calls…when EFA prints 66.
BUY GOOGL @ 554