Dollar Correlation..

7:20 am EST The market has been relatively simple to day trade in recent weeks. If the dollar is strong, sell the equity market. If the dollar is weak, buy the equity market. That has been about it. The dollar is weaker by about 125 pips against the Euro and the futures are higher. Go figure. The financial media digs for stories and excitement. They have advertising to sell and they want to keep you interested. A continual pounding of dollar-correlation stories would bore people into a coma. It would make you a ton of money, but sometimes making money can be boring.

The PPI data will certainly move markets today in addition to the slight weakness in the dollar. You could also see a move in the commodity markets depending on the data. I am reserving judgment until I see the number.

Only one stock stood out to me yesterday from a technical standpoint. I am not fully convinced that the market is going to cooperate and take this stock higher, but I think a small position could be profitable. If you are really itching to put on a trade today, this is where I would look. The company is Partner Communications (PTNR). The stock had a higher-than-average volume trading day and found some significant support. It kissed the 50 day moving average and bounced, finishing the day above the 200 day moving average. That is usually a bullish sign of some support considering the volume.

I would be careful with this trade because of the potential for the overall market to turn on you. If the overall market falls apart, this stock will be very vulnerable. It has very low average daily volume and the lack of liquidity can catch you even with proper stops and limit orders. The risk reward is about 3:1 here and there is potential for the stock to go even higher. I would not put on a large position, but this is a place where you can make some money. Until next time, stay low risk..