Weekend Update: The Bulls Are Running Again!

With a close at new all-time highs for the SP500, Dow Industrials, and Russell 2000 this week, it is safe to say the Bulls are back in charge. A breakout to new highs does one major thing for us a trend traders, it allows us to move our stops on current positions to the most recent significant low. This is always a welcome event for us as it allows us to lock in that much more profit on our positions. Lets take a look at our current holdings and our new invalidation points.

Current Holdings:
HAIN, WFC, HD, F, PBW
XLF, XLY, XLK, XLI, XLP, XLV

Cash:
AAPL, MOS, ENB, CMI
XLB, XLE, XLU

HAIN

HAIN saw a big move above prior highs and posted its second highest weekly closing price ever. Lots to like in this one. Our stop is placed just below the rising 20 WMA and base support at 62.50

WFC

Wells broke out to new recovery highs this week after reporting a very strong Quarterly result Friday. The Financials are still running strong and Wells is one of the strongest in the group. We will look to sell if the $39 area is violated on a closing basis.

HD

Home Depot set a new all-time weekly closing high this week and continues to defy gravity. Our invalidation point on this one is still the trend support and prior low near $72. Our stop is roughly 10% below current prices, so we are giving this one quite a bit of room. But that is the nature of long-term trend...LET IT RUN!

F

Ford just continues to rip to new recovery highs. This week we achieved our Double Bottom target at $17. That doesn't mean we are automatically done with the trade, but it does mean we should expect some consolidation around these levels. Current stop is just below the rising 20 WMA and prior breakout high at $14.25.

PBW

After retesting its base breakout support 3 weeks ago Clean Energy has rallied strongly off that level and closed above the prior highs. The initial target for this reversal pattern is $6.25 and our stop is at the prior low and neckline support at $4.90

XLF

Financials continue to lead the market. With strong earnings reports from Wells, JP Morgan and Citi, the sector group made a new recovery high and continues to move away from the massive base breakout level near $17. Our stop moves up to the $18.50 prior low.

XLY

The US consumer remains strong and the Discretionary sector is ripping to new all-time highs. Big move this week! Our stop is at $54 at our new prior low.33333


XLK

Tech is still riding that uptrend and seems poised to continue higher. Our stop will be trend support with a follow-through confirmation at the $30 level.

XLI

Industrials posted a new all-time high this week and is a market leader. Our stop will be below 42-41.50 level.

XLP

Our newest holdings, Consumer staples, made a strong move this week. Our stop rests just below $39-38.75 level

XLV

Healthcare set a new all-time closing high this week and our new invalidation point is below the support area at $46.50

Overall a very good week for our Portfolio and we will continue to ride these new all-time highs!