The RealMoney contributors are in the business of trading and investing all day on the basis of ongoing news flow. Below, we offer the top five ideas that RealMoney contributors posted today and (if applicable) how they played those ideas.
Energy ETFS in Spotlight This WeekBy Don Dion
7:36 a.m. EDT As many energy companies get ready to report earnings this week, ETFs that track gas and oil will be in focus. One fund at the top of our proprietary rankings is First Trust Natural Gas ( FCG). This natural gas fund, which owns real companies and not futures like U.S. Natural Gas ( UNG) has catapulted near the top of the sector ETFs. A few other energy ETFs with strong momentum include iShares U.S. Oil Equipment ( IEZ) and PowerShares Progressive Energy ( PUW) in the alternative energy space. No positions
Morning TradeBy Bob Byrne
7:50 a.m. EDT On Friday the bears managed to contain the bulls and push us back towards the lower end of our current channel. Currently, we are stuck in sideways consolidation...it's up to the bears to push us through 1071.50 and towards 1065 if they want to morph our current consolidation into price correction. Amazon's ( AMZN) huge earnings release (similar to Apple ( AAPL)) was unable to propel the e-mini through the top of its channel. If traders want to make a run to (and through) 1100 they need to defend the bottom of the channel (1071.50) and target moderate/strong resistance at 1082.75. A sustained trade above 1082.75 should send us back to and through moderate resistance at 1087.75 and onto another test of strong resistance at 1090.25. The e-mini is trading in a manner that would suggest the bulls are a bit tired, but the bears have yet to capitalize on it. If traders are at all interested in the short side they need to avoid another push above 1082.75 and target moderate support at 1077 and 1074.25. Lackluster trading likely sets us up for another test of strong support at 1071.50 ... and if the bulls do not defend the 1071.50 area we should see selling intensify. Downside targets are moderate/strong support at 1068 and strong support at 1065.
FrothBy Ken Wolff
12:52 p.m. EDT A quick move down of a dollar on the PowerShares QQQ ( QQQQ) is what can happen in a market that is at a major top. ... We started this action last Wednesday; anything can happen which will stop out shorters ...
Can 3.48% hold on 10s?By Tom Graff
12:40 p.m. EDT The sharp stock market selloff is helping the Treasury market to bounce off its lows (in price, highs in yield). Going into the 1 p.m. TIPS auction, the question is, will the 10-year yield hold above 3.48%? If so, I think it's pretty bearish for bonds. If a nearly 200-point sudden drop in the Dow, not to mention at 10% spike in the VIX, can't bring out tons of Treasury buyers, how can this week's auctions (other than TIPS) possibly perform? Positions: Long TBT
DJIA Fan Appreciation DayBy Rick Bensignor
1:25 p.m. EDT It's not all that often that I look at classical technical analysis indicators, but sometimes they do serve a purpose for my perspective. Let's take a look at the DJIA's three uptrend lines from the March low during the spring. The breaking of the third one (usually associated with the textbook "fan principle"), ended up leading to a 9.1% decline from the June high, before a low at point B was made.