A few things to watch this week

this week appears dependent on the financials.  Look at how tightly wound the weekly chart is.  Many have noted the relative strength in the big banks like JP Morgan and Goldman Sachs.

Financials are very important here at trend support from 2009.  The thing that interests me is note how the last trend line touch did not lead to new highs,  I'm very skeptical until we reach new highs.

I forced myself to find some things to like in the space.  The group that stands out is insurance.  AIG, PGR, BRK/B in particular.

As commodities work off oversold conditions, some machinery stocks are starting to rally.  Deere is testing a major resistance level this week.  Can it break out?

Trade wise..

CDXS bounced nicely at the 50 day MA and lower bollinger band confluence.  Can it continue?  I'd trade it against 4.35ish.  If it's a risk-on market this could make a run near the highs.  Note earnings are Thursday.

Also on my list, potential daily H&S bottom in hated farm machinery stock LNN, Indian steel name SSLT trying to break a large downtrend, Chicken producer SAFM and eyeing OCN for some consolidation this week.

Trade 'em well!