Last week the S&P continued its rally right up to the prior 820 support area. The internals favored the bulls with an especially strong Monday and A/D Lines of +1000 the entire week. If we look at week 13, we can see a long shadow on the weekly bar. The fact that the bulls were able to break out over that bar in week 14 is quite bullish.
In the week ahead make note of these important economic announcements.· Tues: Consumer Confidence 10:00 AM ET· Weds: ISM Manufacturing Index 10:00 AM ET· Weds: Pending Home Sales Index 10:00 AM ET· Thurs: Jobless Claims 8:30 AM ET· Fri: Employment Situation 8:30 AM ET· Fri: Ben Bernanke Speaks 12:00 PM ET Our next target level is the S&P 875 area with a support level at 805. The dailies are forming a bull flag so any break over $833 should constitute…
Long: CPSI – Pulled back to support making for a great entry point.CCK – An ascending triangle is forming on CCK. We typically trade a move like this in one of three ways, an anticipatory trade here, buy the breakout, or buy the retest of support.CLB, MOS and RCII can be traded in the same way as CCK. GMCR – Very nice triangle consolidation pattern forming. A break in the direction of the trend should result, which in this case…
Monday got off to a great start with news of February Existing Home Sales rising 5.1%, the largest increase since July 2003. We added a few more longs to the watchlist and as we said before, since the market is strong watch for relatively weak stocks to short. Long: CTRP – Bull Flag: Use the top of the consolidation for entry. JCOM – Triangle: Enter on the breakout or the retest. MOS – Ascending Triangle: This can be an anticipatory…
The four major indices (S&P, Dow, NASDAQ and Russell) finished up slightly on the week, but not before touching the S&P 800 level we talked about. The pullback late in the week feels weaker than in weeks past, the 50-MA acted as a resistance level while the 10-Day MA is acting as support. Following a withstanding rally in week 11, week 12 economic news hinted that confidence may be instilled in the markets sooner than previously thought.The breadth ratios on…
In the week ahead make note of these important economic announcements.· Mon: Existing Home Sales 10:00 AM ET· Weds: Durable Goods Orders 8:30 AM ET· Weds: New Home Sales 10:00 AM ET· Thurs: GDP 8:30 AM ET· Thurs: Jobless Claims 8:30 AM ET· Fri: Personal Income and Outlays 8:30 AM ET· Fri: Consumer Sentiment 9:55AM ET Treasury Secretary Timothy Geithner will hold a briefing at 8:45 ET on Monday in efforts to stabilize the financial system. He is also delivering…
While we found more bearish signals over the weekend, many of these weak stocks are holding at their 10 and 20-Day Moving Averages, and remember, a stock will be most likely to act in the path of least resistance. Easing into the week and staying Delta Neutral will help keep your portfolio balanced until a clear trend is established.Long:AAPLAZONFLX Short:CHTTFASTIARTPLLWATWWW More Shorts (Caution: 10/20-Day MA’s turning higher):AEEAVYBKHCLHNATIPAYXSWXVVCWCN
The longs overpowered the shorts last week making some nice gains. Click to see last weeks watchlist in detail. ARO & XLNX – Broke out and is retesting the old resistance (which is now new support)BR – Holding sidewaysGEOY – Fell back to the prior swing low where a new entry was established over the high of 3/16, earnings are coming up so be warnedSVR – 7 up days in a row and climbing ADBE – The stock moved higher…