The ShadowTraderPro Swing Trader is your every morning dose of market reality brought to you from the resident geniuses at ShadowTrader. Each issue contains a full report on the prior day's action, including market internals, technicals, and what sectors were hot and cold. Each issue also includes the ShadowTraderPro Model Portfolio, which updates members on what stock plays STPro is currently engaged in officially, as well as provide a daily list of long and short setups for more self-directed traders and investors.

Market Outlook - Check here daily for the current S&P 500 Monthly, Weekly, and Daily bias.

MONTHLY - Bullish - Fifth consecutive bullish monthly bar close with higher high.

WEEKLY - Bullish - Fourth straight week with large body candle.

DAILY - Neutral - Large gap down retraced resulting in unchanged price.

Good morning traders. Of all twenty five ShadowTrader Sectors, $DJUSRE was the only one to reach primary technical support yesterday. Please observe the chart below.

The blue circles on the chart above highlight each time $DJUSRE has pulled back to the ascending magenta trendline including yesterday (orange arrow). Notice also how price has respected the 50 day moving average (red line) twice so far in 2013 (green arrows).

What is different about the current test however, is the very steep move into the ascending trendline versus the sideways to down angle of the prior two tests. For this reason, traders choosing to initiate long trades in stocks belonging to this sector will want to see a quick and strong reversal higher within the next 2-3 trading days. Otherwise, a weaker sideways to upward move has the potential to develop into a bear flag which sets the sector up for another leg down.

Component and related stocks of $DJUSRE include SPG, AMT, PSA, HCP, VTR, EQR, BXP, PLD, HCN, WY, VNO, AVB, AGNC, HST, GGP, DLR, KIM, MAC, SLG, FRT, PCL, UDR, RYN, CBG, ESS, CPT, ARE, LRY, REG, ACC, DRE, SNH, AIV, BRE, DDR, KRC, TCO, JLL, CBL, NNN, TWO, EXR, DEI, MFA, WRI, HME, SKT, HPT, BMR, PDM, CIM, HTS, STWD, ELS, MAA, PPS, OHI, IVR, CYS, LHO, CLI, EPR, HHC, HR, HIW, ARCT, DRH, JOE, WRE, BDN, CLP, DCT, SSS, OFC, DFT, EGP, PCH, SHO, LXP, ALEX, CWH, RWT, and FSP.

When we say "under the hood" we mean market internals, ie: what was really happening behind the scenes. ShadowTraders who listen to our daily broadcast every day live on the thinkorswim platform know that all closing figures on the major averages should only be interpreted in the context of market internals. Look for convergences and divergences in the breadth, a/d line, and trin figures below to either confirm or cast doubt on what all those talking heads on TV are telling you.

The ShadowTrader Sector Trend Score matrix is a proprietary method of assigning values to twenty five sectors that are a representative cross-section of the market as a whole. The heat map in the trend score column defines the current strength or weakness of that sector using a proprietary weighting formula. Sectors bolded in green and red are the two sectors that experienced the largest absolute gain and loss in trend score over the prior day. We strongly urge subscribers to read the full explanation of the meaning and calculation of the trend scores in the Swing Trader User's Guide.

Our statistical tracking of the ShadowTrader Sector Trend Scores has triggered a short term bullish signal for the broad market as of Thursdays's close.

This indicator has been correct 50 of the last 72 signals as a predictor of a forthcoming short term move by the broad market. An indication is credited as being successful if within three trading days of the alert, the SPY closes above the closing price of the day the alert was triggered.

Up and coming economic and corporate data that may move markets this week:

This section is for self-directed traders and investors who like to "do it themselves". Every trading day, Bulls and Bears will list long and short equity setups with defined entries and stops. Note: A listing in this section does NOT necessarily mean that the stock will end up as a part of the ShadowTraderPro Model Portfolio. Plays listed here change daily and are not managed or tracked by ShadowTrader unless traded via MyTrade posting.

Long Ideas

Short Ideas

The matrix below shows all current ShadowTrader Pro plays in the Model Portfolio. The Model Portfolio contains only those plays that are sent out in real-time via posting to MyTrade or text message to your phone. Bulls and Bears plays above are not actively managed or tracked. Current open positions are on top, with positions that were closed in the current calendar week on the bottom. Closed positions are moved out of the matrix on Monday mornings and posted in our performance page here.

To get the most out of your subscription and for detailed instructions on how to structure your own portfolio, read our Swing Trader User's Guide

OPEN POSITIONS - week of 05/20/13 - 05/24/13
sym	dir	size	date entered	entry price	date closed	exit price	target	stop	status	mark to market	p&l points	p&l capital	capital commit
CNW	short	250	05/20	38.40	n/a	n/a	34.50	40.50	open	38.24	0.16	$40	$9,600
	Shorted near 52 week highs

CLOSED POSITIONS - week of 05/20/13 - 05/24/13
sym	dir	size	date entered	entry price	date closed	exit price	target	stop	status	mark to market	p&l points	p&l capital	capital commit
SPY	short	100	05/14	164.90	05/22	168.00	160.00	168.00	closed	n/a	(3.10)	($310)	$16,490
	Stop triggered
TOTALS:	250	open shares (open capital committed doesn't include closed trades)											$9,600

The ShadowTraderPro Swing Trader is your every morning dose of market reality brought to you from the resident geniuses at ShadowTrader. Each issue contains a full report on the prior day's action, including market internals, technicals, and what sectors were hot and cold. Each issue also includes the ShadowTraderPro Model Portfolio, which updates members on what stock plays STPro is currently engaged in officially, as well as provide a daily list of long and short setups for more self-directed traders and investors.

Market Outlook - Check here daily for the current S&P 500 Monthly, Weekly, and Daily bias.

MONTHLY - Bullish - Fifth consecutive bullish monthly bar close with higher high.

WEEKLY - Bullish - Fourth straight week with large body candle.

DAILY - Bearish - Expansion of range taking out multiple lows. Target 1637.

Good morning traders. Please observe the chart below for key S&P 500 Index (SPY) support levels.

If SPY follows through lower, we will be looking for a reversal off the 38.2% level, of the Fibonacci Retracement study, drawn from the low on 04/18 to the high on 05/22. The blue oval highlights the recent four day consolidation which corresponds 38.2% Fibonacci level while the 20 day moving average (green line) provides further technical support aroound 163.14.

When we say "under the hood" we mean market internals, ie: what was really happening behind the scenes. ShadowTraders who listen to our daily broadcast every day live on the thinkorswim platform know that all closing figures on the major averages should only be interpreted in the context of market internals. Look for convergences and divergences in the breadth, a/d line, and trin figures below to either confirm or cast doubt on what all those talking heads on TV are telling you.

The ShadowTrader Sector Trend Score matrix is a proprietary method of assigning values to twenty five sectors that are a representative cross-section of the market as a whole. The heat map in the trend score column defines the current strength or weakness of that sector using a proprietary weighting formula. Sectors bolded in green and red are the two sectors that experienced the largest absolute gain and loss in trend score over the prior day. We strongly urge subscribers to read the full explanation of the meaning and calculation of the trend scores in the Swing Trader User's Guide.

Twenty two of twenty five ShadowTrader Sectors closed lower on Wednesday. The three sectors that closed higher were $DJSINS. DRG, and GOX. XAL closed lower for the fifth consecutive day bringing it into oversold territory.

Up and coming economic and corporate data that may move markets this week:

This section is for self-directed traders and investors who like to "do it themselves". Every trading day, Bulls and Bears will list long and short equity setups with defined entries and stops. Note: A listing in this section does NOT necessarily mean that the stock will end up as a part of the ShadowTraderPro Model Portfolio. Plays listed here change daily and are not managed or tracked by ShadowTrader unless traded via MyTrade posting.

Long Ideas

Short Ideas

The matrix below shows all current ShadowTrader Pro plays in the Model Portfolio. The Model Portfolio contains only those plays that are sent out in real-time via posting to MyTrade or text message to your phone. Bulls and Bears plays above are not actively managed or tracked. Current open positions are on top, with positions that were closed in the current calendar week on the bottom. Closed positions are moved out of the matrix on Monday mornings and posted in our performance page here.

To get the most out of your subscription and for detailed instructions on how to structure your own portfolio, read our Swing Trader User's Guide

OPEN POSITIONS - week of 05/20/13 - 05/24/13
sym	dir	size	date entered	entry price	date closed	exit price	target	stop	status	mark to market	p&l points	p&l capital	capital commit
CNW	short	250	05/20	38.40	n/a	n/a	34.50	40.50	open	38.57	(0.17)	($43)	$9,600
	Shorted near 52 week highs

CLOSED POSITIONS - week of 05/20/13 - 05/24/13
sym	dir	size	date entered	entry price	date closed	exit price	target	stop	status	mark to market	p&l points	p&l capital	capital commit
SPY	short	100	05/14	164.90	05/22	168.00	160.00	168.00	closed	n/a	(3.10)	($310)	$16,490
	Stop triggered
TOTALS:	250	open shares (open capital committed doesn't include closed trades)											$9,600

The ShadowTraderPro Swing Trader is your every morning dose of market reality brought to you from the resident geniuses at ShadowTrader. Each issue contains a full report on the prior day's action, including market internals, technicals, and what sectors were hot and cold. Each issue also includes the ShadowTraderPro Model Portfolio, which updates members on what stock plays STPro is currently engaged in officially, as well as provide a daily list of long and short setups for more self-directed traders and investors.

Market Outlook - Check here daily for the current S&P 500 Monthly, Weekly, and Daily bias.

MONTHLY - Bullish - Fifth consecutive bullish monthly bar close with higher high.

WEEKLY - Bullish - Fourth straight week with large body candle.

DAILY - Neutral - New high again with flat close.

Good morning traders. The Equity Put Call Ratio (EPCR) is currently at an extreme low. This can be thought of as an indication of a pending reversal for the broad stock market (SPY). Over the past year, the EPCR has been a more productive tool for bulls than bears as we have illustrated on the chart below..

In an unscientific approach to investigating the performance of the EPCR as an indicator, we circled the eight most extreme bullish (green circles) and bearish (red circles) signals. We then observed the subsequent price direction of the SPY. Favorable results were marked with a "thumbs up", unfavorable results were marked with a "thumbs down".

The results showed six successful bullish signals out of eight, but only three successful bearish signals out of eight.

There are a number of conclusions that can be drawn from this, but the two most important observations we see are; (1) timing indicators, such as this, are much less useful in trending markets, particularly those signals that conflict with the predominate trend; (2) the strength of the predominate trend can be confirmed by more frequent violations of indications contrary to the trend. Concerning today's market, five out of five bearish indications have failed since December. This speaks to the strength of the current rally which translates to the difficulty of timing a reversal or pullback.

When we say "under the hood" we mean market internals, ie: what was really happening behind the scenes. ShadowTraders who listen to our daily broadcast every day live on the thinkorswim platform know that all closing figures on the major averages should only be interpreted in the context of market internals. Look for convergences and divergences in the breadth, a/d line, and trin figures below to either confirm or cast doubt on what all those talking heads on TV are telling you.

The ShadowTrader Sector Trend Score matrix is a proprietary method of assigning values to twenty five sectors that are a representative cross-section of the market as a whole. The heat map in the trend score column defines the current strength or weakness of that sector using a proprietary weighting formula. Sectors bolded in green and red are the two sectors that experienced the largest absolute gain and loss in trend score over the prior day. We strongly urge subscribers to read the full explanation of the meaning and calculation of the trend scores in the Swing Trader User's Guide.

ShadowTrader Sector breadth closed mix for the second straight day on Tuesday. Thirteen closed higher while twelve ended lower. No sectors are overbought or oversold by our measure at this juncture.

Up and coming economic and corporate data that may move markets this week:

This section is for self-directed traders and investors who like to "do it themselves". Every trading day, Bulls and Bears will list long and short equity setups with defined entries and stops. Note: A listing in this section does NOT necessarily mean that the stock will end up as a part of the ShadowTraderPro Model Portfolio. Plays listed here change daily and are not managed or tracked by ShadowTrader unless traded via MyTrade posting.

Long Ideas

Short Ideas

The matrix below shows all current ShadowTrader Pro plays in the Model Portfolio. The Model Portfolio contains only those plays that are sent out in real-time via posting to MyTrade or text message to your phone. Bulls and Bears plays above are not actively managed or tracked. Current open positions are on top, with positions that were closed in the current calendar week on the bottom. Closed positions are moved out of the matrix on Monday mornings and posted in our performance page here.

To get the most out of your subscription and for detailed instructions on how to structure your own portfolio, read our Swing Trader User's Guide

OPEN POSITIONS - week of 05/20/13 - 05/24/13
sym	dir	size	date entered	entry price	date closed	exit price	target	stop	status	mark to market	p&l points	p&l capital	capital commit
SPY	short	100	05/14	164.90	n/a	n/a	160.00	168.00	open	167.17	(2.27)	($227)	$16,490
	Shorted at top of ascending channel on daily chart
CNW	short	250	05/20	38.40	n/a	n/a	34.50	40.50	open	39.55	(1.15)	($288)	$9,600
	Shorted near 52 week highs

The ShadowTraderPro Swing Trader is your every morning dose of market reality brought to you from the resident geniuses at ShadowTrader. Each issue contains a full report on the prior day's action, including market internals, technicals, and what sectors were hot and cold. Each issue also includes the ShadowTraderPro Model Portfolio, which updates members on what stock plays STPro is currently engaged in officially, as well as provide a daily list of long and short setups for more self-directed traders and investors.

Market Outlook - Check here daily for the current S&P 500 Monthly, Weekly, and Daily bias.

MONTHLY - Bullish - Fifth consecutive bullish monthly bar close with higher high.

WEEKLY - Bullish - Fourth straight week with large body candle.

DAILY - Bullish to Neutral - First reversal bar in some time on daily SPX, with market opening and closing at same area after pushing to new highs. A move below yesterday's low would be the first since the start of May. Overextension from key moving averages continues to be extreme.

Good morning traders. In the May 13th issue of the ShadowTraderPro Swing Trader, we discussed the utility sector's (UTY) pullback into a primary ascending trendline. That trendline has held support to date. Of UTY's component stocks, Consolidated Edison Co. (ED) is showing the most ambition to move back higher. Please observe the chart below.

The blue oval on the chart above highlights the increase in on-balance volume in ED as the stock has begun to rotate back higher. If the stock follows through in coming days, our long entry alert will be triggered just over yesterday's high and the 50 day moving average. In case our analysis of the utility sector and ED is not correct, a protective stop is placed just under the most recent lows at 60.03.

When we say "under the hood" we mean market internals, ie: what was really happening behind the scenes. ShadowTraders who listen to our daily broadcast every day live on the thinkorswim platform know that all closing figures on the major averages should only be interpreted in the context of market internals. Look for convergences and divergences in the breadth, a/d line, and trin figures below to either confirm or cast doubt on what all those talking heads on TV are telling you.

The ShadowTrader Sector Trend Score matrix is a proprietary method of assigning values to twenty five sectors that are a representative cross-section of the market as a whole. The heat map in the trend score column defines the current strength or weakness of that sector using a proprietary weighting formula. Sectors bolded in green and red are the two sectors that experienced the largest absolute gain and loss in trend score over the prior day. We strongly urge subscribers to read the full explanation of the meaning and calculation of the trend scores in the Swing Trader User's Guide.

Our statistical tracking of the ShadowTrader Sector Trend Scores has triggered a short term bearish signal for the broad market as of Mondays's close.

This indicator has been correct 49 of the last 71 signals as a predictor of a forthcoming short term move by the broad market. An indication is credited as being successful if within three trading days of the alert, the SPY closes below the closing price of the day the alert was triggered.

Up and coming economic and corporate data that may move markets this week:

This section is for self-directed traders and investors who like to "do it themselves". Every trading day, Bulls and Bears will list long and short equity setups with defined entries and stops. Note: A listing in this section does NOT necessarily mean that the stock will end up as a part of the ShadowTraderPro Model Portfolio. Plays listed here change daily and are not managed or tracked by ShadowTrader unless traded via MyTrade posting.

Long Ideas

Short Ideas

The matrix below shows all current ShadowTrader Pro plays in the Model Portfolio. The Model Portfolio contains only those plays that are sent out in real-time via posting to MyTrade or text message to your phone. Bulls and Bears plays above are not actively managed or tracked. Current open positions are on top, with positions that were closed in the current calendar week on the bottom. Closed positions are moved out of the matrix on Monday mornings and posted in our performance page here.

To get the most out of your subscription and for detailed instructions on how to structure your own portfolio, read our Swing Trader User's Guide

OPEN POSITIONS - week of 05/20/13 - 05/24/13
sym	dir	size	date entered	entry price	date closed	exit price	target	stop	status	mark to market	p&l points	p&l capital	capital commit
SPY	short	100	05/14	164.90	n/a	n/a	160.00	168.00	open	166.93	(2.03)	($203)	$16,490
	Shorted at top of ascending channel on daily chart
CNW	short	250	05/20	38.40	n/a	n/a	34.50	40.50	open	38.34	0.06	$15	$9,600
	Shorted near 52 week highs

The ShadowTraderPro Swing Trader is your every morning dose of market reality brought to you from the resident geniuses at ShadowTrader. Each issue contains a full report on the prior day's action, including market internals, technicals, and what sectors were hot and cold. Each issue also includes the ShadowTraderPro Model Portfolio, which updates members on what stock plays STPro is currently engaged in officially, as well as provide a daily list of long and short setups for more self-directed traders and investors.

Market Outlook - Check here daily for the current S&P 500 Monthly, Weekly, and Daily bias.

MONTHLY - Bullish - Fifth consecutive bullish monthly bar close with higher high.

WEEKLY - Bullish - Fourth straight week with large body candle.

DAILY - Bullish - Overextension continues. Month of May has not had a single cross below prior day's low on daily SPX chart.

Good morning traders. Crude oil (USO) looks poised to move higher this week. Please observe the chart below.

The week before last, USO met resistance at the descending trendline (black circle) and began rotating back lower. Early last week, price continued lower before finding interested buyers who moved price back up to the trendline and closed last week's price bar with a bottoming tail (orange arrow).

Based on last week's failed breakdown and the buying that occurred the three weeks prior, there is evidence that USO has enough support under the 20 and 50 day moving averages (green and red lines respectively) to begin exploring higher prices in the near term. If this occurs, we have set an entry alert just over the descending trendline. Our thesis would be proven wrong by an undercut of last week's bottoming tail, so our protective stop is place 0.10 under last week's low.

When we say "under the hood" we mean market internals, ie: what was really happening behind the scenes. ShadowTraders who listen to our daily broadcast every day live on the thinkorswim platform know that all closing figures on the major averages should only be interpreted in the context of market internals. Look for convergences and divergences in the breadth, a/d line, and trin figures below to either confirm or cast doubt on what all those talking heads on TV are telling you.

The ShadowTrader Sector Trend Score matrix is a proprietary method of assigning values to twenty five sectors that are a representative cross-section of the market as a whole. The heat map in the trend score column defines the current strength or weakness of that sector using a proprietary weighting formula. Sectors bolded in green and red are the two sectors that experienced the largest absolute gain and loss in trend score over the prior day. We strongly urge subscribers to read the full explanation of the meaning and calculation of the trend scores in the Swing Trader User's Guide.

ShadowTrader Sector breadth shifted back to bullish on Friday with twenty two of twenty five sectors closing higher. GOX remains oversold after its seventh consecuctive lower close. The only other noteworthy sector is $DJUSSW which has closed higher four consecutive days.

Up and coming economic and corporate data that may move markets this week:

This section is for self-directed traders and investors who like to "do it themselves". Every trading day, Bulls and Bears will list long and short equity setups with defined entries and stops. Note: A listing in this section does NOT necessarily mean that the stock will end up as a part of the ShadowTraderPro Model Portfolio. Plays listed here change daily and are not managed or tracked by ShadowTrader unless traded via MyTrade posting.

Long Ideas

Short Ideas

The matrix below shows all current ShadowTrader Pro plays in the Model Portfolio. The Model Portfolio contains only those plays that are sent out in real-time via posting to MyTrade or text message to your phone. Bulls and Bears plays above are not actively managed or tracked. Current open positions are on top, with positions that were closed in the current calendar week on the bottom. Closed positions are moved out of the matrix on Monday mornings and posted in our performance page here.

To get the most out of your subscription and for detailed instructions on how to structure your own portfolio, read our Swing Trader User's Guide

OPEN POSITIONS - week of 05/20/13 - 05/24/13
sym	dir	size	date entered	entry price	date closed	exit price	target	stop	status	mark to market	p&l points	p&l capital	capital commit
SPY	short	100	05/14	164.90	n/a	n/a	160.00	168.00	open	166.94	(2.04)	($204)	$16,490
	Shorted at top of ascending channel on daily chart

The ShadowTraderPro Swing Trader is your every morning dose of market reality brought to you from the resident geniuses at ShadowTrader. Each issue contains a full report on the prior day's action, including market internals, technicals, and what sectors were hot and cold. Each issue also includes the ShadowTraderPro Model Portfolio, which updates members on what stock plays STPro is currently engaged in officially, as well as provide a daily list of long and short setups for more self-directed traders and investors.

Market Outlook - Check here daily for the current S&P 500 Monthly, Weekly, and Daily bias.

MONTHLY - Bullish - Fifth consecutive bullish monthly bar close with higher high.

WEEKLY - Bullish - Second consecutive higher high, but with danger of overextension to upside now.

DAILY - Bullish - First pullback to close at lows, but market still one timeframing to upside.

Good morning traders. The stocks listed below rose in price on Thursday, but the majority of transactions took place on a down tick. This is an indication that larger shareholders were cutting positions in these stocks which in turn weakens support. This is a good list to scan for short trade setups in preparation for a potential pullback by the broad market.

When we say "under the hood" we mean market internals, ie: what was really happening behind the scenes. ShadowTraders who listen to our daily broadcast every day live on the thinkorswim platform know that all closing figures on the major averages should only be interpreted in the context of market internals. Look for convergences and divergences in the breadth, a/d line, and trin figures below to either confirm or cast doubt on what all those talking heads on TV are telling you.

The ShadowTrader Sector Trend Score matrix is a proprietary method of assigning values to twenty five sectors that are a representative cross-section of the market as a whole. The heat map in the trend score column defines the current strength or weakness of that sector using a proprietary weighting formula. Sectors bolded in green and red are the two sectors that experienced the largest absolute gain and loss in trend score over the prior day. We strongly urge subscribers to read the full explanation of the meaning and calculation of the trend scores in the Swing Trader User's Guide.

The only ShadowTrader Sector to close higher yesterday was $DJUSSW. The other twenty four sectors ended the day lower, relieving the broad market of some overbought conditions. The other notable in the sector scores is GOX which is now oversold, having closed lower the last six consecutive days.

Up and coming economic and corporate data that may move markets this week:

This section is for self-directed traders and investors who like to "do it themselves". Every trading day, Bulls and Bears will list long and short equity setups with defined entries and stops. Note: A listing in this section does NOT necessarily mean that the stock will end up as a part of the ShadowTraderPro Model Portfolio. Plays listed here change daily and are not managed or tracked by ShadowTrader unless traded via MyTrade posting.

Long Ideas

Short Ideas

The matrix below shows all current ShadowTrader Pro plays in the Model Portfolio. The Model Portfolio contains only those plays that are sent out in real-time via posting to MyTrade or text message to your phone. Bulls and Bears plays above are not actively managed or tracked. Current open positions are on top, with positions that were closed in the current calendar week on the bottom. Closed positions are moved out of the matrix on Monday mornings and posted in our performance page here.

To get the most out of your subscription and for detailed instructions on how to structure your own portfolio, read our Swing Trader User's Guide

OPEN POSITIONS - week of 05/13/13 - 05/17/13
sym	dir	size	date entered	entry price	date closed	exit price	target	stop	status	mark to market	p&l points	p&l capital	capital commit
SPY	short	100	05/14	164.90	n/a	n/a	160.00	168.00	open	165.34	(0.44)	($44)	$16,490
	Shorted at top of ascending channel on daily chart

The ShadowTraderPro Swing Trader is your every morning dose of market reality brought to you from the resident geniuses at ShadowTrader. Each issue contains a full report on the prior day's action, including market internals, technicals, and what sectors were hot and cold. Each issue also includes the ShadowTraderPro Model Portfolio, which updates members on what stock plays STPro is currently engaged in officially, as well as provide a daily list of long and short setups for more self-directed traders and investors.

Market Outlook - Check here daily for the current S&P 500 Monthly, Weekly, and Daily bias.

MONTHLY - Bullish - Fifth consecutive bullish monthly bar close with higher high.

WEEKLY - Bullish - Second consecutive higher high, but with danger of overextension to upside now.

DAILY - Bullish - With extreme over extension. SPX has traded ten points through upper channel resistance.

Good morning traders. We have been waiting patiently for semiconductor producer Xilinx, Inc. (XLNX) to trade into the area of prior highs. After a 20 day rally by the PHLX Smiconductor Index (SOX), the stock is now within striking distance of the short entry range. Please observe the chart below.

Unlike SOX which broke out of a trading range to capture higher prices, XLNX is still within its 2013 range with price action that is more "splashy" than trend like.

With the broad market overbought to the upside and the relatively weak performance of XLNX so far this year, we think the stock is a good vehicle to capture gains on a broad market pullback.

When we say "under the hood" we mean market internals, ie: what was really happening behind the scenes. ShadowTraders who listen to our daily broadcast every day live on the thinkorswim platform know that all closing figures on the major averages should only be interpreted in the context of market internals. Look for convergences and divergences in the breadth, a/d line, and trin figures below to either confirm or cast doubt on what all those talking heads on TV are telling you.

The ShadowTrader Sector Trend Score matrix is a proprietary method of assigning values to twenty five sectors that are a representative cross-section of the market as a whole. The heat map in the trend score column defines the current strength or weakness of that sector using a proprietary weighting formula. Sectors bolded in green and red are the two sectors that experienced the largest absolute gain and loss in trend score over the prior day. We strongly urge subscribers to read the full explanation of the meaning and calculation of the trend scores in the Swing Trader User's Guide.

Our statistical tracking of the ShadowTrader Sector Trend Scores has triggered a short term bearish signal for the broad market as of Wednesday's close.

This indicator has been correct 48 of the last 70 signals as a predictor of a forthcoming short term move by the broad market. An indication is credited as being successful if within three trading days of the alert, the SPY closes below the closing price of the day the alert was triggered.

Up and coming economic and corporate data that may move markets this week:

This section is for self-directed traders and investors who like to "do it themselves". Every trading day, Bulls and Bears will list long and short equity setups with defined entries and stops. Note: A listing in this section does NOT necessarily mean that the stock will end up as a part of the ShadowTraderPro Model Portfolio. Plays listed here change daily and are not managed or tracked by ShadowTrader unless traded via MyTrade posting.

Long Ideas

Short Ideas

The matrix below shows all current ShadowTrader Pro plays in the Model Portfolio. The Model Portfolio contains only those plays that are sent out in real-time via posting to MyTrade or text message to your phone. Bulls and Bears plays above are not actively managed or tracked. Current open positions are on top, with positions that were closed in the current calendar week on the bottom. Closed positions are moved out of the matrix on Monday mornings and posted in our performance page here.

To get the most out of your subscription and for detailed instructions on how to structure your own portfolio, read our Swing Trader User's Guide

OPEN POSITIONS - week of 05/13/13 - 05/17/13
sym	dir	size	date entered	entry price	date closed	exit price	target	stop	status	mark to market	p&l points	p&l capital	capital commit
SPY	short	100	05/14	164.90	n/a	n/a	160.00	168.00	open	166.11	(1.22)	($122)	$16,490
	Shorted at top of ascending channel on daily chart

The ShadowTraderPro Swing Trader is your every morning dose of market reality brought to you from the resident geniuses at ShadowTrader. Each issue contains a full report on the prior day's action, including market internals, technicals, and what sectors were hot and cold. Each issue also includes the ShadowTraderPro Model Portfolio, which updates members on what stock plays STPro is currently engaged in officially, as well as provide a daily list of long and short setups for more self-directed traders and investors.

Market Outlook - Check here daily for the current S&P 500 Monthly, Weekly, and Daily bias.

MONTHLY - Bullish - Fifth consecutive bullish monthly bar close with higher high.

WEEKLY - Bullish - Second consecutive higher high, but with danger of overextension to upside now.

DAILY - Bullish - Bullish with breakout to new highs, however risk of new longs extremely high here as SPX cash closed 53 points above 20 period SMA. Over 40 points is considered over extended.

Good morning traders. The banking sector (BKX) is acting like it wants to be the next leader of the broad market higher. Please observe the chart below.

We note in the Daily Market Outlook (above) that short term risk is high with regard to establishing new long positions. However, after the market is relieved some short term froth, traders may want to track BKX more closely for clues about the markets medium term intentions.

It is important to be aware that BKX has now surpassed the highs of 04/2010 (blue circle) and traded through the 38.2% level of the Fibonacci Retracement level derived from the 02/2007 high to the 03/2009 low (red circles).

What strikes us as bullish about the chart above is the very health base BKX has formed since the 03/2009 lows. The range between 32.50 and 57.25 has been thoroughly traded and after a higher-low (black rectangle), the index looks to have enough support now to seek business at higher levels.

Component stocks of $BKX include BAC, BBT, BK, C, CBSH, CFR, CMA, COF, FITB, HBAN, JPM, KEY, MI, MTB, NTRS, PBCT, PNC, RF, SNV, STI, STT, USB, WFC, and ZION.

When we say "under the hood" we mean market internals, ie: what was really happening behind the scenes. ShadowTraders who listen to our daily broadcast every day live on the thinkorswim platform know that all closing figures on the major averages should only be interpreted in the context of market internals. Look for convergences and divergences in the breadth, a/d line, and trin figures below to either confirm or cast doubt on what all those talking heads on TV are telling you.

The ShadowTrader Sector Trend Score matrix is a proprietary method of assigning values to twenty five sectors that are a representative cross-section of the market as a whole. The heat map in the trend score column defines the current strength or weakness of that sector using a proprietary weighting formula. Sectors bolded in green and red are the two sectors that experienced the largest absolute gain and loss in trend score over the prior day. We strongly urge subscribers to read the full explanation of the meaning and calculation of the trend scores in the Swing Trader User's Guide.

A higher close by the broad market today will tigger our overbought signal. Yesterday, twenty three of twenty five ShadowTrader Sectors closed higher. $DJUSHB remains overbought having closed higher for the nine consecutive days. $DJUSHC and $DJUSCA have both closed higher for six consecutive days and XBD has closed higher for five consecutive days.

Up and coming economic and corporate data that may move markets this week:

This section is for self-directed traders and investors who like to "do it themselves". Every trading day, Bulls and Bears will list long and short equity setups with defined entries and stops. Note: A listing in this section does NOT necessarily mean that the stock will end up as a part of the ShadowTraderPro Model Portfolio. Plays listed here change daily and are not managed or tracked by ShadowTrader unless traded via MyTrade posting.

Long Ideas

Short Ideas

The matrix below shows all current ShadowTrader Pro plays in the Model Portfolio. The Model Portfolio contains only those plays that are sent out in real-time via posting to MyTrade or text message to your phone. Bulls and Bears plays above are not actively managed or tracked. Current open positions are on top, with positions that were closed in the current calendar week on the bottom. Closed positions are moved out of the matrix on Monday mornings and posted in our performance page here.

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OPEN POSITIONS - week of 05/13/13 - 05/17/13
sym	dir	size	date entered	entry price	date closed	exit price	target	stop	status	mark to market	p&l points	p&l capital	capital commit
SPY	short	100	05/14	164.90	n/a	n/a	160.00	168.00	open	165.23	(0.33)	($33)	$16,490
	Shorted at top of ascending channel on daily chart