Watchlist Update

With a hanging man pattern on the daily SPY chart, the week started off with a bearish tone. As discussed in prior posts, we like to wait for confirmation when entering and exiting a trade. Our entry “confirmation” long is simply a break ABOVE the prior day’s candle (setup candle), and vice versa for shorts (break BELOW prior day’s bearish candle). In the case of a gap up (as was Monday’s price action), we wait for a break ABOVE the…

To view the original watchlist posted on Nov 29 click here.

If we take out $1040 on the S&P500 look for these stocks to breakout… BWLD, CNQR, CREE, MNKD, NETL If we pull back, here are some weak stocks in down channels or down trends… AAN, AKA, MGVA, PCL

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…