SPY QQQ DIA IWM GLD 

This is Scott with your Chart of the Day. The Chart of the Day is, that there is no chart because the market is a complete mess right now. And in my opinion, you should not be trading this market but heavily in cash. If I am looking at the SPY ( NYSEARCA: SPY ) here, the SPY ( NYSEARCA: SPY ) is a mess. And yes, you can get these nice little rallies but we haven’t had that for a couple of weeks now.

What you should be doing in this market, in my opinion, is just being patient. You should be noting stocks that have high relative strength versus the S&P 500 ( NYSEARCA: SPY ). So anything that is up above all of their major moving averages is a stock you should be paying attention to right now. Not meaning that you should trade it, just watch it. Because even the strong stocks in tape like this can get crushed.

And so my advice to our members over at stockmarketmenor.com, as well as what Dan Fitzpatrick has been saying all week long is, that this is not a conducive environment for big profits. Now, there are not a lot of trading services, quote, unquote, that will tell you that. They will try to get you to come in, oh well we have the secret ingredient and we will tell you how to make all the money in this kind of market.

But let me tell you from experience, real trading, in my opinion, happens, and the real successful trading happens when the market is in a nice uptrend because the market can bail you out. Zooming out here, this is the kind of market where you are going to make a lot of money. This is the kind of market where you are going to give it all back if you’re not careful.

If want to learn how to be patient and learn proper trading techniques then you should come and check out what we are doing over at stockmarketmentor.com. Because that is what we are doing, we are being patient, we are curating our watch list and we are getting ready for a potential upside move. Now, will that be the upside move that starts a new trend? We don’t know, but we will be ready either way.

The SPY ( NYSEARCA: SPY ) is in a downtrend. The QQQ ( NASDAQ: QQQ ) is in a downtrend. The Dow ( NYSEARCA: DIA ) is under all of the major moving averages. IWM ( NYSEARCA: IWM ) is under all of the major moving averages. And Gold ( NYSEARCA: GLD ) is not a safe haven. So you should be very protective with your capital right now, protecting not only the money in your account but what is going on in your head as well.

SU CVE 

This is Scott with your Chart of the Day. I actually want to look at two oil and gas charts that I think are worth keeping on a watch list for you.

The first one is Suncor Energy ( NYSE: SU ). Now, Suncor ( NYSE: SU ) had a monster move today, up 12 percent off of yesterday, a monster move for an oil and gas stock. The reason this stock had a big move is that an activist hedge fund not only announced a stake in the company, a 3.4 percent stake, but they also had a letter of things that they want the company to do.

They think that this company has about a 50 percent upside, so the market liked that news. Really big volume here today, some of the biggest volume this stock has had, if I zoom out, in months. And it is always, throughout this entire market volatility, remained in a pretty good uptrend. It’s already in an uptrend, had some good news today, and moved out of a nice long consolidative base on heavier than average volume. So this, in my opinion, is a stock you want to watch for a pullback to the moving averages.

Now as you know, breakouts in this market have been tough to buy, it’s been hard to buy breakouts. Trust me, I’m a breakout buyer. And a lot of breakouts, I have noticed, have failed. So I have been forced to buy stocks close to some key moving averages.

That is what I think we should do here with Suncor ( NYSE: SU ). Watch for a little bit of a pullback, Dan Fitzpatrick calls this a Phase 1 breakout, and then you have a Phase 2 pullback to the moving averages. And then you get kind of a lower-risk entry closer to support.

So that is what I would look for here on Suncor ( NYSE: SU ). I probably wouldn’t want to buy it here today, even if it goes up again tomorrow you are kind of chasing a little bit. So I would look for a pullback maybe to the gray line here, which is the 21-day exponential period moving average.

Another oil and gas stock I think is worth watching is Cenovus ( NYSE: CVE ). Now, Cenovus ( NYSE: CVE ) had a big move off of the 21-day. And then in the last 2 sessions, it is up almost 14 percent. So again, with this one, you will probably want to watch for a little bit of a pullback to support and then start building an entry close to the moving averages.

These are 2 stocks that are in well-defined uptrends and moving on higher than average volume and are above all of their major moving averages. Those kinds of stocks, in my opinion, are pretty hard to find in this market, and that is why I think you should keep Cenovus ( NYSE: CVE ) and Suncor ( NYSE: SU ) on a watch list.

ARCH GLD CEIX SPY 

This is Scott with your Chart of the Day. I want to take a look at two coal charts because coal has turned into black gold, at least as far as the market is concerned because real gold ( NYSEARCA: GLD ) is not so great. It is under the 50-day, under the 21-day, and under the 8-day. But if you look at a stock like Arch Resources ( NYSE: ARCH ), a big move off the 50-day, coming on higher than average volume. Now, as a swing trader that’s the kind of stuff I am looking for.

And then if we take a look at another coal stock, something like CEIX ( NYSE: CEIX ), Consol Energy. Again, look at this, it closed right above that 8-day exponential period moving average and did it on pretty good volume, so there is still a bid under a lot of these coal stocks. And so I think CEIX ( NYSE: CEIX ) is definitely one you want to keep an eye on, and ARCH ( NYSE: ARCH ), this is massive volume.

If I zoom out here, some of the biggest volume this stock has had in years and on a pretty bad day in the market as well. The market was so blah today, that I basically just cried under my desk all day. But I did see Arch ( NYSE: ARCH ) move off the 50-day and do it on higher than average volume. I think this is definitely a sector you want to keep your eyes on.

Now, I would say watch for a move through here but I think this stock really is something you want to keep an eye on closer to that 21-day exponential period moving average because it had a 20 percent day. And if this stock opens lower tomorrow and I am swinging some overnight, chances are some sellers are going to come into this.

So I wouldn’t look to FOMO anything like this, pretend it didn’t make a 20 percent day today, and look for it, I think, kind of closer to these moving averages. As long as it can hold above these key moving averages I think it is something you will want to pay attention to. It’s the same thing here with CEIX ( NYSE: CEIX ). Watch it close to the major moving averages, but if it has a big up-day, don’t be the one buying at the top.

I really think in this market you have got to be very careful with buying anything breaking out. Because if the market is making new lows and something is breaking out, you are going to get some things happening. You are going to see momentum traders coming in, helping to push the stock higher. If you see that stock open lower, guess what? Those MOMO traders are gone, they are going to sell right away, and then that is going to, potentially, cause a cascade effect and you will see more sellers come in.

So I would just be very careful about buying something that is up 20 percent in one day, especially a commodity of any kind because it is based on a lot of geopolitical stuff. I would just keep an eye on this because I really like the fact that this had a lot of strength, coming on higher than average volume at a key moving average.

So keep an eye on Arch ( NYSE: ARCH ), keep an eye on CEIX ( NYSE: CEIX ), and watch for entries close to some clear support zones so that you know that if it moves the other way you’re wrong, small loss, and you are moving on to something else.