Good morning,

Wanted to get a quick update out.  The SPYs have moved up or tried to move up nearly every day since last Tuesday.  That pretty much negated any realistic chance for our bearish mentions to operate and it was our figurative “gunpoint” conclusion as well.

That leaves us with our bullish names.  AA and HD.

AA was attempting to participate and did close above our trigger level BUT failed to surpass the $30.28 high we referenced in our webinar.  That high is the one we sort of knew it would have to deal with to really move higher but we preferred to “cheat” our way in earlier in hopes it would close above $30.28 in the near future.  On Thursday it reached a high of $30.27 but couldn’t push past $30.28 on a closing basis.  Friday brought a big drop and today it is bouncing back a little.

The SPYs, after running to the 100 SMA level we noted, are having a hard time moving beyond it.  Thus, the resistance we thought could be an issue, has been an issue.  If the SPYs roll over from here, we don’t plan to hold onto AA.  If AA keeps trying in concert with the SPYs, we’ll wait it out.  If not, we’ll be gone with a small loss.

As of now, it’s been 3 days in a row that the SPYs have struggled at our $270.00 level.  How much longer the struggle can continue without breaking up or down is anyone’s guess but with news set to hit the tape in the form of more earnings, we wouldn’t expect it to take too long.

HD, as is often the case as a bullish mention, has had a much better go of it.  It’s moved up about the $5.00 we thought it could if the SPYs stayed in bull mode.  If the SPYs surmount the 100 SMA as we note above, HD could try to power up to $189.00ish.

More when warranted!

Wayne