The markets

It was another quiet night in the market. There is no obvious impetus to drive the market higher, but one stock I recommended to my elite students on Thursday, Cara, was up 12.19%. What a great trade that has been. I know several students are in it and would have done exceptionally well over the past couple of days. If you’d like to learn about trading options, begin by watching my free training video here:

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The transports were the index up the most, up 0.57%, while the Nasdaq was the worst performing index, losing 0.44% of its value.

In terms of the sectors, utilities was the strongest performer, up 0.68%. There were a couple of great trades to be had in this sector! The financials were the second best performer, up about 0.5%, while the largest sector, technology, was down around 0.5%. Overall the market was weak and I have a great bearish trade I intend to share with the elite students tonight.

A stock that did well in the burgeoning utilities sector was FE. It moved up strongly and broke above its 30-minute opening high. You can see a bull flag on the five-minute chart and the MACD showed positive divergence. EXC was another great trade in utilities. It also had a bull flag and once the MACD worked off its over-bought condition and turned upwards, EXC moved up strongly.

21-day EMAs

The S&P 500 is above its 21-day EMA and also above its 8 EMA. That is strong price action. There is nothing bearish there. If we look at the transports, they have been strong for the past three days and are also above their 8 EMA. The industrials too are above its 8. The Nasdaq is above its 8, but much closer to its 21-day EMA. I was curious last night to see if it would remain above this. The index closely linked with technology, XLK is right on its 21-EMA, to the cent. The 21 EMA on the daily chart is at 56. Tonight again focus on the Nasdaq and this EMA on the XLK chart. Will it bounce off it or break below it? If it breaks below it there could be bearish opportunities, but if it bounces there could be bullish opportunities.