Mid-Day Minute
Mid-Day Minute, published mid-session daily, features technical strategist Mike Paulenoff's annotated chart analysis of a key market and its ETF or bellwether stock in play.
Selling Yen
Apart from the fact that apparently the equity market never goes down anymore, the potentially most exciting technical set-up is selling YEN (buying USD/YEN) or being long, or adding to longs, in the UltraShort Yen ProShares (NYSE: YCS). For the last couple sessions the dollar has been unable to sustain beneath 90.00, which also happens to coincide with the flattening 50 EMA at 90.16. The ability of the USD/YEN to consolidate at or above 90.
Constructive Signs for DIG
The Ultra Oil & Gas ProShares ETF (NYSE: DIG) popped above key Feb-Mar resistance at 34.40/50 to a recovery high at 35.05, after which it revisited the breakout level into this morning’s low at 34.25. This morning’s upside pivot reversal from 34.25 has propelled the DIG to a higher recovery high at 35.10 so far. The fact that the price structure is holding above the breakout plateau (34.25) within a larger base-like pattern that projects to 37.50 next is a very constructive sign.
Long-term Upside for EMC
The longer-term pattern in EMC Corp. (NYSE: EMC) has huge upside potential for a thrust above multi-year resistance at 18.50, which should trigger conservative near-term targets of 20.60 and 21.50. Today’s upmove from 17.87 to 18.45 has the right look of the initiation phase of the thrust above resistance. However, my hourly work is very overbought, which suggests to me that for EMC to continue higher directly from here, it must be the subject of some sort of bullish catalyst.
BMY Thrust Off Neckline
Bristol-Myers Squibb Company (BMY) continues to act extremely well technically. Below is what I wrote three weeks ago, with BMY at 24.61. The big picture analysis remains unchanged, and this week's positive action -- especially today's surge from 24.45 to 25.30 -- argues strongly that the price structure has started the thrust off of the neckline retest (Jan low at 23.49). If such a scenario proves accurate, then BMY should be heading for 26.00-26.60 directly from here.
T-Bond ETF Forecasting Weak Jobs Report?
The iShares Barclays 20+ Year T-bond ETF (NYSE: TLT) are acting relatively strong today, the day ahead of the Employment Report. Purely from a technical perspective, all of the action off of the Feb low at 88.51 exhibits bullish form, which suggests that the net reaction (after the first 2 or 3 whipsaws) of the TLT's to the jobs data will be to the upside... As we show in our chart, after holding key near-term support for two sessions at 90.
