First off, the Russell 2000 ($RUT) did what everyone hoped it would do last week, it broke out, which is good for the broad market.
Second, if you took the $AAPL trade suggested in last Sunday’s post you risked about 8 points and closed Friday up 24 points. A 1:3 risk/reward ratio…not bad! You also would have done well with $LVS, $TGT, and $PCS from that same post.
Some trade setups for you consideration. Unless otherwise noted they are good-looking setups on the daily chart for taking day trades, i.e. ”Set up for home runs, but hit singles and doubles.”
WTF..??? A financial stock…??? Look at the facts. Recent double bottom, break of down trend line, and a tight flag. You have your risk defined here in $MS.
I have been watching $FB for a bounce for a while but none of any significance has emerged. I still think we see one at some point at least on a intra-day basis but it is looking real bad by breaking below this recent range. If it can’t recapture that range it is “short at will” time.
$THC has always been a crappy trading stock, but a double bottom and a flag pattern make this one interesting. More of a macro play on healthcare.
This pattern of making minor uptrends in a larger downtrend and then breaking them may be happening again in $FXCM.
After coming off major support $GLD is making higher highs and the price range is getting narrower.
Same type of pattern in $SLV may mean the precious metals are getting ready for a larger move.
Some sloppiness in the chart of an IPO can be forgiven. $YELP looks interesting to me if it could pullback to the top of the channel without giving up too much more in price.
Another holdover from recent post. The range here in $MITK is defining your risk.
$ACW was on the list last week and broke the minor consolidation range. Would like to see a day or two of sideways movement below this larger resistance level, and then the move could be substantial.