Watchlist June 20-24, 2011

It's techs time! This weeks watchlist is a big one. These are the heavy hitters I like to call them, and they are entering some important levels which I have been watching very closely since putting in there tops. I'm looking for these levels to be extremely important this week because these key reference areas will be defended by large investors, institutions and big time swing traders covering short positions and reversing to go long. When I was reviewing these I got to thinking that these are such important areas that if these trade and the key reference areas are respected and begin to trade higher, that its going to put heavy weight on the rest of the indices and could potentially pull them higher. And IMO the market as a whole will not stop selling until the heavy hitters have bottomed. The following watchlist I have done over the last several weeks consisted of the big banks, and in my eyes they are trying to bottom/have bottom IE. $GS which I have been swing long now for close to 2 weeks with minimal heat on the position. With a extremely volatile market ($VIX breaking out), and $SPX taking a nose dive, $GS has been legitimately holding my key reference are of 132.64 and making a low the day of my entry of 131.50 which still holds today. On to the transportation index, that was last weeks watchlist, and IMO with falling oil prices and the setup that was developing, ($CL_F is still attempting to meet its objective of 87.00 from a short key level of 102.40) I still expect $KSU $UPS to continue higher. So with the wrap up here, I believe that tech is ready for a correction and believe its going to pull the $NASDAQ higher and in return pull the rest of the stock indicies with it. If we want a real bottom in the $ES_F/$SPX the $NASDAQ needs to have the heavy hitters bottom as well. Hope this watchlist was a good one. Good Trading Kratrader.