Friday, March 23, 2012

Weekend Thread

SPY Daily Chart
It was a down week but I think it can be logically argued that the broad market as represented by the SPY held up quite well.  In March the 20 day simple moving average was pierced and we actually spent 2 sessions below it.  This time we bounced from just above it.  A follow through on Monday could put is back on track for new 52 week highs.

Friday Afternoon Thread

CBOE Daily Chart as of 11:55EDT
It's a little on the thin side with average volume around 350k shares/day.  Closed outside the upper Bollinger band 4 days in a row and it's up there again today.  I might take a small position.

Friday Morning Thread

XHB Components compared since March 1


These are the seven best performing components for the XHB for the first quarter (LEN, KBH, SPF, HOV, BZH, PHM and MDC). That list should please those who like trading some of the low priced stocks. There are about 12 other stocks in the XHB. For the entire quarter to date, the hands down winner is HOV, even though it underperformed in March. Past performance is no guarantee of future results. In fact this chart indicates there may a little profit taking happening in some stocks.





KBH reports earnings this morning before the open, which could be the catalyst for a move in either the individual stock, or the entire group. You could hedge your bets by trading the XHB etf, as it is quite liquid and also has a very liquid options chain.