Five things to consider in the markets...

Bulls Head Trading Analysis, LLC identifies and analyzes important trends and supply and demand levels in the financial markets.    

“In financial markets, there are certain price levels that are more important and significant than others with regards to the amounts of supply and demand that exists at these levels.  In addition, prices of securities are always trending.  They are always doing one of three things…either going up, going down or staying the same as time progresses.  BHT utilizes a common sense and simple methodology to identify these levels and trends.  An understanding of these levels and trends will add Alpha to almost any investment process.“

-Mark Putrino, CMT

 

US Dollar Index - The dollar index has traded lower since December when it was around $103.  It is currently trading around the $93 level.  The last eight times that it traded down to the $93 - 94 level going back to early 2015 it found support.

DXY Curncy (DOLLAR INDEX SPOT) D 2017-08-24 11-31-25.jpg

 

Foot Locker - I mentioned this one on August 18th.  I said if it rebounded off of the $31.50 level I would go long and I did.  Today it is trading around the $35.50 level.  There were four reasons why this trade was attractive.

First, there was support around the $31.50 level because it was the bottom of the range in 2012 and 2013. 

Second, it became oversold.

Third, it formed a classic candlestick reversal pattern. 

Fourth, there was also large volume which was consistent with a capitulation.  

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FL US Equity (Foot Locker Inc) L 2017-08-24 11-51-18.jpg

 

RSP Permian Inc. - RSPP is testing support around the $30 level again.  This has been an important and clearly defined level for over two years.  I would consider going long if the downtrend breaks and it rallies off of current levels.

RSPP US Equity (RSP Permian Inc) 2017-08-24 12-09-04.jpg
RSPP US Equity (RSP Permian Inc) 2017-08-24 12-12-34.jpg

 

Snap, Inc. - SNAP has capitulated as well.  This stock has only been trading since March.  It has trended lower since then and on three days in mid-August about 300 million shares traded.  It has trended higher since then and I am long.

SNAP US Equity (Snap Inc) S&P 50 2017-08-24 12-18-49.jpg

 

Utilities - The XLUs are trading at All-time high.

XLU US Equity (Utilities Select  2017-08-24 11-36-24.jpg