Fishing for Stops?

 DIA has shown improvement on the move lower

 The Q's have shown a lot of improvement.

As has USO.

The SPY/IWM are in line, maybe a hair better, but nothing like the DIA/QQQ which were also the strongest looking 3-c wise yesterday as well. Keep an eye on the USO trendline, a quick dip below it and a recovery above it would have me thinking about a leveraged long like ERX. Or continued improvement, especially if it bleeds over to the 5 min chart.

USO update

Could this be the counter trend DOE trade we've played several times in the past? The 1 min chart certainly isn't lagging and it didn't follow price.

I'll let you know if t posts anymore divergences.

DOE Inventories

The Department of Energy released this week's data at 11 a.m., a day and an hour late. You can probably guess what the results were from USO's reaction..

This particular data series has also often given us signals that defy the DOE report and the initial knee jerk reaction, leading to some decent trades of 10% or more.

We'll see if we get one of those fade the knee jerk reactions, they usually show up pretty quick after the initial plunge.

Insiders Continue To Abandon Ship

Last night when showing you the length of the negative divergence in the market during 2010/2011, I reminded you of the insider selling ratio that has been in the triple digits and occasionally higher. This week's Bloomberg insider trading was in the triple digits, 147:1 actually. This week there were $2.3 million in purchases, nearly half of that in one stock alone. On the sell side, $333 million in insider sales.

For newer members, this is nothing new, I can't remember the last time the ratio was skewed toward buying, insiders have been selling for as long as I can remember , well over a year.

XOMA Trade (long)

XOMA was mentioned here on May 9 and 16th. It just hit an alert I set yesterday. This one may run a bit longer considering the length of the lateral range, I'd personally take partial profits at any sign of a double digit return and put a trailing stop behind the rest. If you need suggestions on the stop (if XOMA moves enough to warrant it), just email me.

 XOMA's lateral consolidation on a daily chart.

 The movement this a.m. on some volume that triggered my alert from yesterday.

60 min 3C-positive leading divergence. The risk:reward ratio at this level looks pretty good as well. I'd still consider this a speculative trade with all of the same rules and principles applying to it as the last few listed.

INO A CATS and DOGS Trade (long)

INO was one of the alerts I set yesterday, it just triggered. Remember these are speculative trades, I lower risk on these positions to a maximum of 1%. I also take double digit profits ASAP, these C&D trades can really fly, but don't often last much longer then a few days.

 INO daily

INO 60 min 3C positive divergence.

SQNM Trade (long)

We've looked at this one before and it's pretty close to a breakout. I view this as a short term trade, maybe it can make a swing move, but I personally would take profits on anything that reaches double digit gains, especially if it happens in a day or two.

 The daily range we often see in accumulation/distribution

 Here's the range on a 30 min chart, the breakout level is $7.98, I'd probably use $8.00

The 3C 5 min chart during the range moving into a relative positive divergence, higher at each test of the range's lows

I take that back

There is a leveraged oil long with volume, UCO.

Market Update/USO

Last night I posted that it looked like we may get a 1-day oversold condition, this happens when the market goes to absolute extremes, such as the Dow with ZERO gainers. Also remember yesterday how the Cats and Dogs of the market were performing good on a relative basis considering their volatility and BETA.

 DIA 1 min 3C- The DIA looked the best yesterday, today we see at least two positive divergences in early trade

 DIA 5 min also is looking good, if we average the accumulated position, we can get a rough target of a break even point, I'd guess it would be around $123, but distribution always takes place into demand and usually above the average accumulated position. This 5 min chart is looking pretty good for the DIA.

 IWM 1 min 3C is probably the slowest to get in line this morning with only 1 positive divergence and note how it occurred on a new low-typical.

 IWM 5 min looks a little better believe it or not.

 The QQQ was the second best looking chart yesterday and this morning's positive divergence has sent it higher, so far the move up is confirmed at the green arrow.

 QQQ 5 min is actually in a leading positive divergence, the strongest kind (in the white box)

 SPY 1 min is looking pretty good thus far, two relative divergences and 1 leading positive divergence, it's just sitting at a resistance zone right now, I imagine it will break through shortly.

 USO showed a late day positive 1 min divergence yesterday, we saw a gap up this morning off that, plus the dollar weakness, there's another positive divergence and the entire divergence is in a leading positive position.

USO 5 min looks pretty god, the leading divergence from the 1 min chart should spill over into the 5 min chart within the next hour or so. Unfortunately there's no leveraged long I know of that has any kind of volume, OLO is leveraged, but the volume is pretty thin.

UUP/$USD Continued

Remember the negative divergence forming in UUP yesterday? It was shot down after Moody's sent Greece's credit rating plunging 3 notches, but today, the divergence got it's way.

 From yesterday's 1 min UUP negative divergence, it's dropped this morning, this may give equities, PMs and commodities in general a little breathing room. Don''t forget the larger picture in the dollar though.

On the 15 min chart accumulation has started, it's only natural that we will see short term negative divergences when the dollar climbs too high, remember accumulation occurs the most often in a flat trading range. We have about 2-3 days under our belt, the last Dollar divergence had about 6 days of accumulation before it moved higher.