Channel Guy Trader: Stock Market Analysis For Ending Day 04/05/2011

Hello Traders, looks to be another mixed day in the market as we are in such an area that can catapult us to higher levels to test the double top which is about 12 points away on the S&P 500 futures around 1342 or we can get some selling to test the 1318 to maybe 1310 area. I am seeing pockets of strength in the market which I have been outlining. As you all know I have been harping about the retail sector this past week and they just continue to perform. Looks like fund managers are showing some love in the department stores now as I guess they expect the economy is picking up and so will these people looking forward to getting summer jobs and spending some summer money. In any case, take a look at the department stores and see how they performed today ---->http://elite.finviz.com/screener.ashx?v=111&f=ind_departmentstores&o=-change . My favorite which I have been watching and see some suspicious options activity on is Macys. Taking a look at the May 26x Calls we had a huge buyers come in and purchase over 5k contracts. Looking at the weekly chart we see that there could be a smooth ride to 26 as long as the market cooperates and on the daily we just broke out of a triangle and backtested. Now this is not a trade I plan on placing because retail stocks are just not my thing, however I may place it if we can get a slight pullback in the market and this stock was to trade sideways a couple more days and not breakout. Knowing my timing though, it may breakout. Commodities were pretty strong across the board also as Gold got a huge bid and most of those stocks BTFO. I like AEM in the gold sector sitting on weekly support and GG is in beast mode. Luckily I sold my RIG puts for a small loss instead of holding because that thing looks to have found support down here. With so many people possibly trapped in the head and shoulders pattern and hoping it breaks down, we could see a squeeze in this one. I was expecting this to breakdown, but it held so I got out with a small loss and oh yea by the way its called discipline. Others may not have been as strong and may pay for it. The OIH is showing a possible bull flag in the making so with the market possibly continuing to float higher, I like retail, metals, and the energy sector. I will be posting on the blog more than I do the videos for the fact that by the time I get home from work, I hit the gym and then get back home burnt out. So writing is much easier for me right now than the videos. I know I may not be the best writer, but hey I can help you make some over 30% a week on atleast one solid trade =]. GoodNight!!