chart below details the pattern relative strength in $YINN (top chart) vs. $SPY (bottom chart).
Both charts look the same for the most part until August. $YINN shows clear relative strength, setting higher swing highs and lows above the horizontal breakout level, while $SPY begins to trend lower.
On the daily chart, we see $YINN resting at the 10-day MA while volume has tapered off the past two sessions. As such, we are placing $YINN on today’s watchlist with a fairly tight stop. We refer to this type of trade as a G.O.N.G. setup, which means “go or no go” because of the tight stop. Note that we will also trade $YINN with reduced share size if it triggers.
After breaking below the 50-day MA last week, Merrill Lynch Semiconductors HOLDRS ($SMH) is basically in no mans land, trading between the 50 and 200-day MAs. However, there is key support from a weekly uptrend line, as shown on the chart below. A move above yesterday’s high could provide decent entry point for those looking to climb aboard $SMH on weakness.
The iShares Silver Trust ($AGQ) swing trade setup triggered our buy entry to the penny yesterday, then reversed off the day’s high alongside of the broad market. A move above Wednesday’s high (plus a few cents) is a logical entry point for those who have not already entered.
This article is brought to you courtesy of Morpheus Trading, LLC.