Long-side swing trading potential in CYH, RHB & UHS http://traderinsight.com/Videos/Tom/060109/060109/060109.html

Tomorrow I will look at RYL on weakness, NRG & HOT on strength

Major indices were up on better-than-expected reports on jobless claims and durable-goods orders then down on new home sales. But the Treasury auction came to the rescue pushing stocks sharply higher as confidence in a quick economic recovery again made its way around the street.

Yesterday everyone was thrilled to pieces with the consumer, and on Wednesday the paradigm shift was in as usual with traders questioning whether consumer exuberance will lead to an inflationary environment in the shadow of massive government spending programs.  One way or another, I think this market is ready to fabricate just about any reason it can to fade the big moves, and Wednesday was no exception.

We will be looking at the following shorts on broader market weakness tomorrow: CTB, HOG, RCL, UNP, HDB

I am watching HDB an entry opportunity to the short side from the Stocks & Sectors videocast for today http://traderinsight.com/Video/Adrian/052009/052009.html 

Tomorrow I will be looking at PNK on broader market weakness

Most economists agree that housing data is going to have to improve significantly before the rest of the economy can get back on its feet.  And the data released by the Commerce Department on Tuesday were anything but encouraging.   Housing Starts were down almost 13%, and coupled with disappointing guidance from Home Depot, kept the market in a tight Backdoor Slider setup throughout the session.  That’s still a buy-side pattern, but it’s not anywhere near as encouraging as the Fast Ball expansion of range that we put in after Lowe’s surprised on Monday and sparked a 235 point rally.

The VIX moved lower again, indicating that some more of the uncertainty about market performance may be filtering out.  And that certainly raises the possibility of upside action over the next several sessions as money parked on the sidelines is put to work by investors who think the worst is behind us.  Looking at Tuesday’s late day bias, though, sellers hit the market pretty hard into the close, and internals deteriorated as the Dow dropped from 8530 to 84.70 over 30 minutes of trading on increasing volume.  That’s definitely not a bull sign for Wednesday trading.  We’ll keep an eye on the overnight futures to see whether a reaction move bootstraps the open, or if the bias continues into early trading and retraces some of the Monday expansion.

Breakeven stop in place 3:23 EST

Closed BRS flat 3:34 EST

As trading days go, Tuesday has been far from exhilarating.  The market has been consolidating Monday’s Fast Ball expansion of range and volume day in a Backdoor Slider Setup that has had most stocks oscillating in a tight range for most of the session.  Dreamworks was the early standout, as the Stocks And Sectors On The Radar candidate hit the entry early in the session and managed a trip to the target and beyond.  Stocks to Watch setup EIG also handed over a target.  But as of 2:15 EST, SAH has stopped us out twice and CP is trading stubbornly below the second entry.