TSYS: Round 2

This is the second time I've posted on TSYS...the first post was for a potential channel trade but it did not work out very will. This stock has just chopped around a bunch since then but now it looks like it might be worth watching closely again. Here's the daily and weekly charts for tsys with a few comments:The bottom line is that both the weekly and daily charts are showing tightening price contractions which might lead to a tradeable breakout. I will probably start scaling in on the dips and I'll be looking for a breakout to new highs for a confirmation.

TLT

On Vacation

My wife and I will be traveling in Italy for the next week and a half. We will be staying in Rome, Venice and Florence and can't wait to be over there. This will be our first time in Italy and we've heard wonderful things about it. Obviously I will not be paying much attention to the markets while we're gone...I'll try to check it once every day or two but not like I normally do.

Hope everyone has a good week (and another good one next week) and I'll be back posting at the end of next week.

TLT

Weekly Wisdom Quote

"The difficulty lies, not in the new ideas, but in escaping from the old ones, which ramify, for those brought up as most of us have been, into every corner of our minds."

John Maynard Keynes

Copper Update

Here's a daily copper chart (continuous contract) with the Commitment of Traders (C.O.T.) data in the bottom window. Copper is consolidating a little and has formed a flag pattern. The key will be to look for a breakout of the flag pattern and then to see if the C.O.T. data confirms the breakout.

If copper breaks out to the upside, I want to see the large traders line head higher and cross zero. Note that the Commercials and Large Traders lines were approaching zero and about to cross each other and then they pulled back...probably because of the recent weakness in the commodities markets (with the exception of yesterday and today). If copper heads higher but the Large traders line falls more, I'm bailing on copper because that should be taken as a warning sign.

Here's the chart with some annotations:Have a great day!

TLT

Weekly Wisdom Quote

"Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent."

Calvin Coolidge

Stocks Sold Off A Bit This Week

I've been slammed with my lawyer work this week and haven't had much time to follow the markets. Today, I pulled up an hourly chart of the S&P 500 to get a feel for what the price action has been and selling has been the name of the game this week. My TLT Trender v2 registered a "sell short" signal at the beginning of the week on the hourly chart and here it is:As you can see, the TLT Trender had a good sell signal for this week...wish I'd of been around to trade it...oh well. I did manage to trim my long positions a little because one stock that I was holding (OMN) hit a stop loss and now I'm waiting to see what the market will do.

The daily chart of the S&P shows that we're still in buy mode according to my system and the stochastics is heading towards an oversold level...maybe a good point to buy little. Here's the chart:The market was probably due for a little pullback and now we'll have to be patient and look for clues as to what will likely come from the pullback. Will the dip buyers step up and buy or will the overall market panic and keep selling? Who knows. One level to watch is the $975-980 support in the S&P...longs do not want that level to be taken out.

Hope everyone's having a good week and I'll be back with something tomorrow.

TLT