Charts To Watch - Published Thursday, April 4, 2013 8:43 AM ET

No Videos today. I lost my voice to a cold.

Will They Sell The Open?

We are seeing a pop in the futures this morning, on bullish news from Japan overnight.

The warm glow of this bullish news should start to dissipate after the open.

I would be a seller on any strength today.

We have money still moving back into bonds. 

We saw a nice pop in the VIX yesterday, but it's too early to define it as a trend.

I am currently long SPX VIX 18 Calls, and they will not start to show a profit until we see another day like yesterday.

Even with yesterday's selling, the Dow, S&P 500, and the NASDAQ 100 or all still on buy signals. 

While the Russell 2000 and the Zacks Microcap Index got whacked.

Our weight-loss Index was the best performing sector in our database yesterday.

 

On the strength of Under Armour.

 

And the worst performing sector in our database was the Gold Sector.

 

This is not at all a new story, the breakdown in the gold sector started last year.

  

As we talked about yesterday, the major indexes are still holding up.

This tells us that money is flowing into fewer and fewer stocks.

Those fewer stocks are mostly in the very conservative sectors such as Healthcare.

 

The market is never very healthy when Investors do not want to play in speculative sectors.

With many of these conservative stocks already at all time highs, not 52 week highs, but all time highs are getting  pretty pricey. At some point in the not so distant future, these conservative investors will move their money from the stock market to the bond market. This year, that move may sync up with the Sell in May Seasonal Strategy. (which is anytime now)

Looking at the 60 minute charts, look for an hourly close above 1563.63 on the S&P 500 to generate a new intraday buy signal. Our about 10 points above the close.

And for the NASDAQ 100, look for an hourly close above 2812.50 to generate a new intraday buy signal. 

 

Sell the open.

All for now.

Stephen Whiteside  

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