Monday evening

Looks like it's going to be right warm in Irvine

Monday afternoon

SP-500 Daily Chart (11:11)

The index is testing the long term support line that it broke to the downside last month.  A close above it will likely encourage money from the sidelines (or to move from bonds to stocks.)  It might even make some of those Beanie Baby collectors dump that crap and get into equities.

Traders are adjusting to the coming taper and the most often mentioned timing of September does not appear to be so scary.  Of more immediate concern will be earnings.  Don't count on AA to be good as they are a serial disappointer but JPM reports Friday before market and their outlook should be interesting.

Monday morging

Gator's Chart of the Day: WETF

Taking a look at one of baron's old favorites ... I've been told that the health of the Japanese economy impacts this stock so consider that as you read the international news.

The stock had been moving steadily higher for the first half of 2013 before dropping like a rock on some bad news from Japan.  Now that Abe appears to have gained confidence Japan has stabilized and WETF is looking better.  After falling to the March price level the stock has found support and has now made a higher (arrow) low.  If it clears 12.03 that will be a higher high and give it a chance to move back above the 50 day sma.

The Trade 
I am not currently in the stock but I will be looking to enter if it holds above 11.15.  I doubt I can get in at that level and I expect to see the price around 11.80.  I will look for a long call position in either the front month (quick trade) or a bit farther out if I want to hold for a couple of weeks or longer.  My stop would be just below Thursday's intraday low.  A close above the 20 day sma would be encouraging and I would likely add the next trading day.  If the stock clears the 50 day and holds for 20+ minutes I would likely fill out the position.