Rally Mode!

Several recaps today:

On the hedge positions ProShares SDS & QID, hit their respective stops of $39 & $22 with about 5% losses on both. This market has been unbelievably resilient, to a point of a melt up!

Abbott Labs (ABT) report stellar earnings the stock is up 15% from the Itz Pix suggested entry. Intel & JP Morgan, tech & financial leaders have ignited this earnings season. Most are setting a year end target of 1200 on the S&P 500.

Gold should continue to rally, more so I believe silver will outperform. Even so oil looks like it will be participating. As I've reported on this blog, it usually lags the gold market by 3 to 4 months. Look at $75 resistance to break as well as 76 support on the dollar. Charts below show that as well at the gold/dollar chart...interesting resistance.

The Itz Pix portfolio is set to profit from the year end market rally.
*click on charts to expand images

ITZ PIX & Gold

Head & Shoulders pattern for gold ($GOLD) Price Objective $1,300...also this past Fridays Itz Pix Portfolio, AA exits, while UNH & RIMM enter. Looks like the ProShares hedges the SDS & QID may hit their respective STOPS $39 & $22

ITZ PIX Portfolio Changes

Suggest:
*SELL Alcoa AA $14.35 - $9.14 entry in July +57%

* New BUYS--
~ Research In Motion (RIMM) $69.50
~ Unitedhealth Group (UNH) $24.50

OIL Set to Break Out!

You can't miss the headlines of Gold making new highs...is anyone talking about oil breaking out and heading to $95 or $100 this winter?

The energy sector is set to breakout just as gold was 3 to 4 months ago. Don't believe...just look at one of the Itz Pix stock...Transocean (RIG) move today?
*click on chart to expand

Yamana Gold (AUY) & THE DOLLAR

Yamana Gold (AUY) is as I type, trading up 6% intraday, @ $12.30, with several upgrades out. RBC Capital Markets raised the price target to $13 from $12 ~read~

The US Dollar is trading just below it's Sept. 23rd low of 75.80.

Take a look at those who own AUY via Itz Pix Portfolio, selling a covered call, Jan $14 call AUY-AP currently around $0.90. Yamana Gold was a suggested entry back in July @ $8.50, this would lower the cost basis to $7.60. Max return if called by Jan expiration +84%. Buyback call if stock pulls back prior to expiration.
*click on chart to expand image

ALCOA REPORT, UP IN AHT

ALCOA (AA) posts surprise Q3 profit, ~read~

* First profit in a year, on cost savings, higher prices
* Revenue drops from year earlier but above Street view

The stock is trading up 80 cents @ $15 in after-hours trading.

Here are some other Itz Pix Portfolio stocks reporting in the next few weeks. AAPL Oct 19th, ABT Oct. 14th, FCX Oct 21st, GOOG Oct 15, LNC Oct 28, RIG Nov 4 and VLO Oct 27.

Futures are pointing to a higher open tomorrow, watching the Sept 23rd high on $SPX 1080 to be tested, also watch 76 dollar level & Gold should hit $1100 by Friday.

SILVER WHEATON (SLW) & more...

I want to highlight a few things today:

-Silver Wheaton (SLW) price target raised by Canaccord to $16

-Suggest or consider covered call option Dec. $15 SLW-LC around $1.10, ITZ PIX entry $12.66 - $1.10 = cost basis $11.56. If called +30% option expires in 10 weeks. Or should SLW pull back, then buyback call, keep net difference and resell call as stock rebounds.

-CNBC video discusses gold/silver ratio

*click on chart to expand image

Update: ITZ PIX, S&P 500 & AA

Itz Pix Portfolio is infuego as the dollar trends lower, Gold hits a new high and inflation adjusted...has alot more to go! The $SPX last Thursday hit its trend line & 50-ma, matter of fact it came smack on my downside limit of 1020 (1019.95). However, I continue to hedge via ProShares SDS & QID, until I see the "Key Reversal" high made several days ago near 1070/1080 taken out. Alcoa (AA) reports tomorrow, a key market mover kicking off earnings season, this time will be more difficult as the bar is set higher and from last quarter, which earnings easily beat. I'm still concerned on the technical chart pattern on the $SPX the weekly rising wedge which comes in around 1125.
*click on chart to expand image

GOLD -SILVER- DOLLAR!

GOLD!!!! Heard enough today, well as it breaks it's March 2008 highs on news of the dollar possibly losing it's place as the world currency.

Oil producing nations denied a British newspaper report that Gulf Arab states were in secret talks with Russia, China, Japan and France to replace the US dollar with a basket of currencies including gold in trading oil.

The Itz Pix portfolio, which has been in gold and commodity stocks since July is profiting nicely today. I continue to see Gold and silver more so, as the plays into year end. I'm also liking oil here ...it too will play catchup to gold/silver in the next few weeks.
*click on chart to expand image

NASDAQ & NASDAQ 100 Testing Trend Line

The NASDAQ ($COMPQ) and technology stocks have lead the rally since March '09. The $COMPQ is up 70%...BUT...it is currently testing it's trend line, any break lower could escalate selling. I've also posted the $NDX, in part to use the "Percentage of Stocks Trading Above" their respective 50, 150 & 200 day moving averages. [Not available on $COMPQ]. In this $COMPQ chart I use the 30 & 60 EMA. chart
*click on chart to expand image

Markets Getting Worried?

Former Fed Chairman, Alan Greenspan said on ABC's "This Week", that the jobless rate will pass 10 percent and stay there for a while, and a second stimulus plan is not needed now. ~read story~ Also the G7 met over the weekend and the dollar is lower in early Monday trading overseas. ~read story~
For the week ahead... ISM Non-Manufacturing Index out Monday and earnings season starts this week with AA reporting.

Charts indicate the $SPX is primed for more selling in October. Thursday, I noted that 1020 was nearterm support, on Friday the $SPX's low for the day was 1019.95. With the $SPX under 1035 I remain bias to the downside. Again the play has been a weaker dollar & higher stock & commoditiy prices...I suspect a nearterm rally to 78 on the dollar, a plunge under 76 could also spook investors. Keep and eye on volatility ($VIX), seems to be perculating lately as investors become less complacent.
*click on charts to expand image

Are Markets Heading Lower?

Over the past few weeks & just this past weekend; I posted that a pullback was coming and that using hedges, or as I suggested the ProShares SDS & QID would be wise. So is this just a one-day pullback? Or is this possibly a 10% correction?
Today's ISM report showed a decline in new orders, peaking short term, also Congress asking about dollar policy while questioning Ben Bernanke doesn't look good.
Tomorrow's Jobs Report will be a significant data point that will either rally or accelerate the selling...its all about JOBS!
I've posted quite a few charts below as well as a CNBC video of Oppenhiemer's Carter Worth. The charts are those of the ITZ PIX portfolio, except for the Proshares QID & SDS, with some suggested stops. Aslo suggested stops on ITZ PIX portfolio are on closing prices, not intraday prices.
*click on charts to expand image