ShadowTrader Focus Report_2008

ShadowTrader_08 · Mar 16, 2009

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Good Morning, Traders. You may recall in yesterday's ShadowTraderPro Focus Report, we illustrated how we thought the market would pull back before heading higher. As of 2:00 PM yesterday, the pullback was underway and by the close all the major indexes had formed either an inverted hammer or bearish engulfing price pattern. With this information alone, one would think we are in for a very active day of selling. In fact, we would not be remiss in stating that everyone and their mother thinks this market is going lower. But after our nightly homework and scan of over 700 issues we are here to inform our beloved band of ShadowTraders that this market is not going down anywhere near as far as what is being anticipated by the masses. We agree that the market is likely to take a rest and lightly retrace some of its recent gains, but we are hard pressed to find any evidence beyond simple price patterns that indicate anything more.
 
Grab that crow bar over there and let's pry open the hood so we can show you what we are talking about.
 <img src="http://assets.shadowtrader.net/charts/090317Dan.gif" width="560" border="5" height="650"> Above is a chart of the CBOE Volatility Index ($VIX). As you may know, the $VIX is a measure of S&P 500 Index option volatility and is commonly used to measure "fear" in the market. It occurs to us that greater anticipation of significant decline in stock prices by professional traders would be reflected by a higher reading on the $VIX than the level it reached yesterday. This suggests that a steeper decline retracement of the recent rally is not likely. If you need more technical indications consider the following.

After making a double top (blue circles) the $VIX failed to make a higher high (green circle). After this bullish event (for stocks) the $VIX went on to break the ascending trend line. Now, even though the general public is expecting a strong pullback, the $VIX lingers near the low end of its range indicating lower probability of a dramatic retracement. Now let's look at the "king" of our indicators, NYSE Breadth.
img src="http://assets.shadowtrader.net/charts/090317Dan2.gif" width="560" border="5" height="650"> The chart above compares the S&P 500 (SPX) with NYSE Breadth on a 4 hour basis over the past six trading days. If we look at yesterday's trading, it is very interesting to see that even though the market declined during second half of the day, breadth maintained a positive level and did not "fall apart" as we have seen so many times in the past when the market has sold off late in the day. It takes heavy selling by institutions to demolish the breadth, but as the market began its decline yesterday, big money was not participating to a very large extent. If institutional money isn't selling, there definitely will
not be a large reversal.
Now after all of this, you might be saying to yourself, "Hey Peter, if you don't think we are going down heavy today, why did you list two shorts in the Bulls and Bears section and why aren't there any long trades listed?" Here is the answer.

The two short trades are short term plays. We think the trades are viable as the market pulls back some today, but because we don't think the pull back will be substantial, you will need to monitor the trades closely. Set hard stops and be quick to take profits if advances toward your price targets begin to falter.

We didn't list any long trades because we are waiting for the stocks we are monitoring to come into their sweet spot (which isn't too far away) before buying them. We are practicing a fundamental skill of every successful trader, patience, before we scoop up shares in names like ABC, THG, AMZN, SHLD and RIMM to name just a few.

ShadowTrader_08 · Mar 17, 2009

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Good Morning, Traders. In yesterday's ShadowTraderPro Focus Report we highlighted how the bearish price patterns that formed on the major indices Monday were going to mislead the majority of traders into believing that heavier selling would occur yesterday. What allowed us to make this correct observation was the fact that internals such as market breadth, advancing versus declining issues and volume levels did not support the pending decline that the price patterns were indicating. If there ever was a case of how ineffective price patterns are without the support of underlying internal indicators, this was it. Now, as if the market were a great professor testing it's students on this principal again, we are presented with another opportunity to prove our understanding of it. This time however, the glaring price pattern is supported by internal indicators. Let us observe the chart of the S&P 500 Index (SPX) below for more details. <img src="http://assets.shadowtrader.net/charts/090318Dan.gif" width="560" border="5" height="650"> We don't hide the fact that we at ShadowTraderPro are stock geeks. We confess that we printed a color chart of the daily SPX after the close yesterday and pasted it into our all time most beautiful chart scrapbook. The bullish large body engulfing pattern and the absolute violation of the previous day's inverted hammer (blue oval) deserved a special place in our hearts. Yes, it's a beautiful price pattern, but the fact that it was supported by unyielding breadth, advancers versus decliners and $TICK yesterday tells us that the price pattern is much more reliable as a predictor of future price direction than a price pattern, like Mondays, which lacked the support of the internals.
Therefore, we are maintaining our bullish stance. Having said this though, we want to make one more point that we think will serve you just as well as our technical analysis.
 
If you have been long this market during the past six days, you might be feeling very pleased with yourself as you should. There isn't anything wrong with this unless it ultimately causes you to return the profits you have made to the market. There are 21.88 points left to the target of 800 on the $SPX with a high probability that we will get there. But by understanding that your judgment might be influenced by the euphoric feeling that success brings and consciously tempering it, you will have a much better chance of not only retaining your profits, but also adding to them as we move our way through the next 21.88 points. Remind yourself that the closer the SPX comes to 800, the more conservative your long positions should become.

ShadowTrader_08 · Mar 18, 2009

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Good Morning, Traders. Yesterday brought back memories of the go-go days when former Federal Reserve Chairman Alan Greenspan would lead the Federal Reserve to a 50 basis point rate cut that would send the markets flying. This time the Fed announced measures to head off the country's economic woes and the market responded with a dramatic run higher that resulted in the S&P 500 (SPX) touching our target level of 800 before closing the day at 794.35. Up until the announcement yesterday, the market was rather lethargic, but every sector ripped higher almost immediately after the Fed made their plans public and consistent with closing market action over the prior six days, the market maintained its strength into the final minutes of trading.
 
Because of the feast that bulls gorged themselves on yesterday, we would normally be pounding the table for our fellow ShadowTraders to short every stock in sight. But because Friday is options expiry, trading becomes much more complicated.
 
Instead of illustrating just one index for our discussion today, we decided to use the broader lens of all four major indices. What we discovered from our analysis after the market close was that the market is actually more reticent in showing us where it intends to go next, in spite of yesterday's explosive rally. Let's look at the charts below for more detail.
 <img src="http://assets.shadowtrader.net/charts/090319Dan1.gif" width="560" border="5" height="650"> While looking at the matrix of charts above, the solid blue horizontal lines and purple boxes represent recent swing lows in the markets that we feel should act as new resistance on this test from the depths of Hades.
 By observing the top left chart, we see that the NASDAQ 100 Index ($NDX) has blown through its prior low level (orange oval) and broken above its 50 day moving average (green box). Notice also that the $NDX has now moved into an area of lighter resistance (blue shaded area) so a continued move upward should be less difficult. If we were looking at the $NDX exclusively for market direction we would have an bullish view overall.
 
Now looking at the SPX chart (top right), it is clear that this index is at a crossroads. It is facing the resistance of the declining green trendline, the 50 day moving average (red line) and its prior low (blue line). Each of these resistance points are encircled in the orange oval. Observing this chart alone would cause us to have a more bearish outlook because a pullback seems to be in order.
 
The two lower charts of the Dow Jones Industrial Average ($DJX) (lower left) and the Russell 2000 Index ($RUT) have similar outlooks to each other. If they can break the green descending trendline they both would have a good chance of moving up to their 50 day moving average, and then possibly up to their prior low (blue line). But whether they will break the green trendline remains to be seen and placing a trade before that battle is decided is nothing short of gambling. If we were observing these two charts alone for market direction, we would be neutral.
 
So the bottom line here is that there are a number of factors which has us not as bearish as we thought we would be at $SPX 800. To recap, all of the averages are out of sync with each other, with some actually in the clear for more gains, and others at resistance. Key sectors such as $XBD are acting rather hunky as of late (note the GS breakout over strong resistance) and the market's tone is generally bullish into expiry. It's clear at any rate that we should allow the market a couple more days here to show its hand. While the 800 S&P did act as a perfect top to punctuate yesterday's fed action, everything else above does not inspire us to place any more capital at risk during the final two days of trading this week. 
There will be ample opportunity to gain footholds in long or short positions next week as issues such as XBD, APPL, GS, ABC, GS and others remain on our radar for proper entry points.

ShadowTrader_08 · Mar 19, 2009

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Good Morning, Traders. Below is a chart of the S&P 500 ($SPX). From the looks of it, there are clouds brewing on the horizon, however because today is quadruple witching, we will not be issuing any trades in the Bulls and Bears section or putting any new capital to work in the ShadowTraderPro Model Portfolio. Price action today will have little to do with any rational analysis and everything to do with the billions of dollars at stake in the options market just like it does every third Friday the month. Having said this, let's look at the chart below to observe the major technical influences that should be in play as we think about our approach to next weeks trading.
 
 <img src="http://assets.shadowtrader.net/charts/090320Dan.gif" width="560" border="5" height="650"> Within the magenta oval above, things are getting pretty exciting. The fifty day simple moving average (red line), the descending trendline (blue line) and the prior low level (green line) all converged on the most recent price level and surprise, surprise, price bounced off all three yesterday. This shows us that as strong as this rally has been, these three technical levels will not be overcome with ease. It will take a good bit of power to get through them. The question is does the market have enough left in the tank to do the job? Because option expiry Fridays usually trade flat, we'll most likely have to wait until Monday to see how the market intends on dealing with these three forces going forward.

ShadowTrader_08 · Mar 22, 2009

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Good Morning, Traders. In the March 17, 2009 issue of the ShadowTraderPro Focus Report, we talked about how bearish price patterns that were appearing on the daily charts of the major indices were going to lead traders in the wrong direction, and they did. Now the weekly charts of the S&P 500 ($SPX) and Dow Industrial Average Index ($DJX) are showing distinctly bearish price patterns and once again, we are skeptical of their usefulness in signaling market direction this coming week. Let's look at the weekly chart of the $SPX below to discuss what we have in mind.
 <img src="http://assets.shadowtrader.net/charts/090323Dan.gif" width="560" border="5" height="650"> Because last weeks sell off was not more forceful after hitting the 800 level on the SPX, we are of the view that the market will not be retesting previous lows in the near future and has in fact gained meaningful support during the recent rally. As we mentioned in the ShadowTraderPro Video Weekly, we will be buyers on any pull back in price that is accompanied by lower volume. We are looking for support on the $SPX around 750 (magenta line) which is the low of the last weeks inverted hammer price bar.

Because last Friday was quadruple witching; we will be very attentive in our observation of overall market behavior during the first two days of trading this week. This will include close monitoring of not only price patterns, but also breadth, advancing versus declining issues, volume, and sector performance, all for the purpose of gauging if this market truly has the strength to move beyond the descending blue trendline and the previous low (green line).

One sector to watch closely this week is the AMEX Securities Broker Dealers Index ($XBD). Please observe its weekly chart below.
 <img src="http://assets.shadowtrader.net/charts/090323Dan2.gif" width="560" border="5" height="650"> Because the $SPX and the $XBD tend to follow each others price direction, the $SPX will not be going higher without the $XBD moving along with it. What is interesting is the $XBD has touched recent highs on numerous occasions in 2009 (orange circles). A violation of last weeks topping tail (green circle) will result in another test of recent highs. A weekly close above the previous highs will be a strong signal that the markets are prepared to move higher.

As we stated earlier, if there was going to be a retest of early March lows, the pull back from 800 on the $SPX would have been more pronounced. The only spoiler to our theory is Fridays quadruple witching which tends to cause bullish market price action during the days leading up to it. But market leading issues like GS, AMZN, AAPL and others were hardly phased by the pull back last Thursday and Friday. This is another clue that the market might be gearing up for another leg higher.

ShadowTrader_08 · Mar 23, 2009

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Good Morning, Traders. Our thinking that the bearish price patterns on the weekly charts of the S&P 500 ($SPX) and Dow Industrial Average Index ($DJX) would again signal misleading market direction proved to be correct once more. So now ShadowTrader will once again address the eternal trading question,"where is the market going next?". There is much to discuss so let's get right to the charts. <img src="http://assets.shadowtrader.net/charts/090324Dan.gif" width="560" border="5" height="650"> The first chart is of the daily $SPX. Last week we wondered if the market had enough gusto left after the recent rally to move through resistant forces of the blue declining trendline, the previous low level (magenta line) and the 50 day simple moving average. Well yesterday we got our answer in spades as the $SPX pushed through all three points (black circle) with steady and strong force. We have set our next target on the $SPX at the 850 level which is an area of prior congestion (orange line).

Now let's widen our perspective of the overall market by viewing the NASDAQ Composite Chart ($COMP) below.
 <img src="http://assets.shadowtrader.net/charts/090324Dan2.gif" width="560" border="5" height="650"> The $COMP passed through it's descending trendline with force yesterday and now has limited resistance up to the prior lower high at 1598.50 (orange circle). We are now buyers of NASDAQ stocks on low volume pullbacks. If the index can move past 1598.50, this would have significant longer term bullish implications. But we will take it as it comes instead of allowing ourselves to fall into the trap of believing the market will do what we think it should.
 <img src="http://assets.shadowtrader.net/charts/090324Dan3.gif" width="560" border="5" height="650"> A perfect example that the market only does what "it" wants to do is illustrated on the chart of the AMEX Securities Broker Dealers Index ($XBD) above. Yesterday we talked about how bullish a violation of the weekly topping tail would be. Frankly, we thought it might take several days for this to occur, but the market did what it wanted and pushed the price above the topping tail in just one day making the move unquestionably bullish.

It is very important to understand what is really happening when a topping tail is violated like this. Because the $XBD closed above the high of the previous weeks topping tail, 100% of all the shorts that took positions at levels within that topping tail price bar are wrong. So if they held their positions through yesterday's trading, the pressure of their uncomfortable positions will be very intense and many of them will acquiesce to the stress (hey, it rhymes) by covering their short position thus pushing the sector higher.

Currently, our near term view remains bullish. Our longer term view will be evaluated once the next levels of resistance on the major indices come into play. Remember though that because the market does what it wants when it wants, there is never a sure thing in trading, so do not relax your use of stops or change your risk controls because we are experiencing this bit of sunshine for the moment.

ShadowTrader_08 · Mar 24, 2009

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Good Morning, Traders. As often happens after such a major run up in stocks, the market followed up with a pull back yesterday. Though the market seemed to lack any commitment by longs to continue the rally yesterday morning, it did make a run at Monday's highs later in the day. But by 2:00 pm, market internals were making it clear that the market did not have any power to push the market higher.

As the broader market was making its way through a choppy day, we were faced with two decisions in the ShadowTraderPro model portfolio. First, let us review the chart of Sears Holdings, Inc. (SHLD) below.
 <img src="http://assets.shadowtrader.net/charts/090325Dan.gif" width="560" border="5" height="650"> We have marked the chart with the price parameters that were sent out as ShadowTraderPro Advisories on SHLD to illustrate the history of the trade leading up to yesterday's decision to exit. We called for a long entry of 250 shares at 40.26 as price broke over the top of the shelf (magenta line) exactly one week ago today. We set the stop price at 37.95, which was just below the bottom of the shelf. We chose a target of 45.00 because this was the next level where price would meet resistance from previous consolidation. Now let's zoom in on SHLD via a 15 minute chart of yesterday's trading to observe the exit of our position in more detail. <img src="http://assets.shadowtrader.net/charts/090325Dan1A.gif" width="560" border="5" height="650"> Yesterdays chart of SHLD shows that the stock was strong, particularly in relation to the overall market early in the day. By 12:45 PM, the stock passed our original target of 45.00 and was continuing to move higher so we kept the position open. At 1:45 PM both SHLD and the S&P 500 ($SPX) hit their highs of the day (green circle). We continued hold the position because the overall market internals were not weakening dramatically and SHLD had the support of the ascending trendline (magenta). At 2:05 PM, the market made a second attempt to overtake Monday's highs but failed and we recognized at that point that a double top had formed on the $SPX and the market internals. We knew by 2:15 PM that we had captured the meat of the days move in SHLD as the $SPX was signaling that the market was going lower. We exited our entire 250 shares of SHLD for a very healthy gain of 12% in 6 days.

The fact that the market sold off at the end of the day with SHLD following suit was immediate feedback that we had made the correct decision to hold the position open even after price had passed through our original target, but then exit the trade once the broader market began to fall apart.

We had another decision to make for our position in Research In Motion Limited (RIMM). Let us first state that RIMM was not near our target price, but given the overall markets weakness near the end of the day, we still had a decision to make with regard to whether or not we wanted to stay in the trade. Let's look at the 15 minute charts of RIMM and $SPX below.
 <img src="http://assets.shadowtrader.net/charts/090325Dan1b.gif" width="560" border="5" height="650"> RIMM performed with relative strength all day. Once it reached its high of the day it did break the secondary ascending trendline (blue) but this was more a function of time than price. It was not until the final 15 minutes of the day that it broke its primary ascending trendline unlike the $SPX which broke its up trend around 2:15 PM. Finally when we compare the final 15 minute bar on each graph (orange ovals), it is clear to see the RIMM maintained strength even into the close as the market sold off steadily. In fact, the $SPX closed below the low of the day into the last 15mins and RIMM clearly did not. This means that for all intents and purposes, RIMM made a green body (small) candle on the day, while the S&P made a red body candle. Hence we stay firm on RIMM. Our target is the 50ma daily which is in the $45 area.

Overall we remain bullish here, and are looking for strong stocks to enter on pullbacks. Short positions should be limited to counter-trend plays only rather than directional shorts as most stocks follow the broad market which is currently moving in favor of the bulls.

ShadowTrader_08 · Mar 25, 2009

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Good Morning, Traders. The bulls seem to show no signs of quitting here
as early weakness in yesterday's session translated into closing
strength, pushing all of the majors back into the plus column at the
close. Although Research In Motion Limited (RIMM) hit our tightened trailing stop, there are
still tons of others out there rallying hard. ShadowTraderPro fave
Vista Print Limited (VPRT) which has received more than one mention both here in the
Big Picture and Bulls & Bears broke out hard yesterday and
made new highs. Below are a few others that have good odds of upside
follow through today.
 <img src="http://assets.shadowtrader.net/charts/090326AMZN.gif" width="560" border="5" height="650">

Amazon.com, Inc. (AMZN) which stopped us out earlier this month before ripping much
higher (grrrrr), pulled back yesterday to a prior high and "hammered" on
its daily chart. A price move over yesterday's high should send the stock much
higher. If you have a moment, check the weeklies on it and you will see
that there is still room to move on the upside.
 <img src="http://assets.shadowtrader.net/charts/090326AAP.gif" width="560" border="5" height="650"> Advanced Auto Parts (AAP) is another issue that seems to be setting up for a
break. Industry leader Autozone, Inc. (AZO) was quite bullish yesterday as well
and seems to be carrying other names that are in the same space along
with it. Pretty straightforward chart of AAP is above. The green circle means
"go" and the red circle means "stop". Isn't that easy?
 <img src="http://assets.shadowtrader.net/charts/090326NETL.gif" width="560" border="5" height="650"> With the PHLX Semiconductor Sector Index ($SOX) recently breaking out over the key 230 level, chip
makers are worth a look on pullbacks. NetLogic Microsystems, Inc. (NETL) came across our scans
recently as a nice pullback right to trendline support. The reversal
is shown above in the yellow circle. Use Wednesday's hammer highs and
lows as possible entry/exit points for a trade.

To hedge our bets, we did short some Cintas Corporation (CTAS) yesterday for a
counter-trend short. Our timing was good as the stock dropped like a
rock immediately following our entry. Timing entries with the broad
market is the big secret in case you are wondering. (Peter enters swing
trades as if they were day trades, then just holds them longer.) While
we still feel the market is overall bullish here, as stated in prior
Focus Reports its ok to have some shorts on here and there
whenever you think the market is getting overheated, just don't make
them of the directional, breakdown to new lows, type variety. Those
tend to not work in bullish environments like the one we are in now.
Stick to the hit and run counter-trend plays whenever hitting the bear
button.

ShadowTrader_08 · Mar 26, 2009

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Good Morning, Traders. This market continues to refuse to roll over. For the second day in a row the market internals finished strong in the last hour of trading and volume finished just slightly above average. The S&P 500 Index ($SPX) reached a high of 832.98, which is only 17.02 points away from our most recent target of 850. Because the index is now only 2% away from our target, it is prudent to review our perspective of the markets for the near term.
 <img src="http://assets.shadowtrader.net/charts/090327Dan1.gif" width="560" border="5" height="650"> Above is a daily chart of the $SPX. The index was successful in closing above the 78.6% Fibonacci Retracement Level, which was drawn from the high February 9, 2009 to the low on March 6, 2009. We will have to wait and see if the index can stay above this level, but if it does, it then will be challenged by the intermediate descending trendline (blue) and the 850 price level where previous congestion may slow the $SPX down. <img src="http://assets.shadowtrader.net/charts/090327Dan.gif" width="560" border="5" height="650"> The top two charts in the matrix above should look familiar to our subscribers. These are the charts that were published in the March 19, 2009 ShadowTraderPro Focus Report. In that issue we discussed the fact that both the Dow Jones Industrial Average Index ($DJX) (upper left chart) and the Russell 2000 Index ($RUT) still had some room to move, but they both had to pass through the descending green trend line, the 50 day MA (red line) and their previous low (blue line).
 
Yesterday, both of the indexes finished above the last of the three hurdles they faced on March 19, 2009. This was quite an accomplishment, but what we will now be monitoring is how these indexes perform as they enter previous areas of congestion highlighted on the charts (yellow shade). Like the $SPX, these areas may act to slow the rise of stocks.
 <img src="http://assets.shadowtrader.net/charts/090327Dan2.gif" width="560" border="5" height="650"> The last two charts are of the AMEX Securities Broker/Dealer Index ($XBD) (top chart) and PHLX KBW Bank Sector Index ($BKX) (bottom chart). We have stated in past Focus Reports that the market will not move higher without these two indexes. The $XBD is moving toward the key level of a prior high (blue line). Whether you are day trading using a five minute chart or swing trading using daily charts, the first touch of a resistance or support level usually results in a bounce off that level.

If the BKX does break out of the ascending triangle to the top side, it will face the recent high level at 32.63 (blue line). So like the XBD there is a good chance that it may bounce off that level. What all of the information provided from the charts above tells us is that we may be in the last stage of this rally. We aren't telling you to get short here, in fact for today we are staying bullish. What we are saying though is that no rally lasts forever and it is clear that the market is approaching areas that could either slow the rally or possibly reverse it. Stay cautious with any long positions and pay attention to how the market behaves as the major indices enter into areas of previous congestion and how the financial indexes perform as they approach recent highs. The market action at these levels will tell us a lot about how to approach trading going into next week.

ShadowTrader_08 · Mar 29, 2009

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Good Morning, Traders. Going into this week of trading, ShadowTraderPro continues to maintain a bullish stance. But we think the market needs to "set the table" before it serves up the next leg higher. Let's go to the charts below to review exactly what we have in mind.

<img src="http://assets.shadowtrader.net/charts/090330Dan.gif" width="560" border="5" height="650"> Above is the weekly chart of the S&P 500 Index ($SPX). Two very bullish events took place by the close of last weeks price bar. First the $SPX closed above the descending green trendline and second it violated the previous bars shadow to the upside. As we stated in the ShadowTraderPro Video Weekly, we have adjusted our target on the $SPX up from 850 to 875, but we don't think the move higher will come before the market takes its foot off the gas pedal to mark some time by either chopping sideways or declining slightly. The previous lows (dotted black line) that were once resistance to the markets advance are now its support of any pullback before the next move higher. <img src="http://assets.shadowtrader.net/charts/090330DanVix.gif" width="560" border="5" height="650"> The chart shown above is of the CBOE Volatility Index ($VIX). This chart is looks like it is ready to break out to the downside of the pennant that has formed (magenta trend lines) since mid December 2008. The bearish engulfing price pattern indicates that this move could happen sometime this week. If the $VIX can move down through the 50 MA there would not be much support for it until the prior high of July 2008 (thin blue line). The $VIX moves in the opposite direction to market prices so this action would have bullish implications for stocks. <img src="http://assets.shadowtrader.net/charts/090330DanXBD.gif" width="560" border="5" height="650"> We have been highlighting the AMEX Securities Broker/Dealer Index ($XBD) in recent ShadowTraderPro Focus Reports because when this index moves, the market will be moving along with it. We have indicated where the $XBD has been rebuffed by the 80.75 resistance level eight of the past 16 weeks including last week. It is now clearly off a double bottom (magenta circles) and the large number of attempts to break the 80.75 level only make its next attempt more likely. A break and close above the 80.75 level will have significant bullish implications for the market as the $XBD will not meet any real resistance until well above it's current price.
 <img src="http://assets.shadowtrader.net/charts/090330DanGS.gif" width="560" border="5" height="650"> Arguably the strongest stock in the $XBD is Goldman Sachs Group, Inc. (GS). Observing the daily chart of GS above shows that it is currently in the process of setting up for it's next leg higher. We are looking for a pullback into the green shaded square area as a buying opportunity. It should be at this point where the $XBD may have also completed a light pullback in gearing up for its next attempt to break resistance. If it does, GS will easily be moving along with it.

ShadowTrader Focus Report_2008

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