In last week’s post there were ten long setups and no shorts. Seven of the longs triggered and three did not.
The $SPX broke a downtrend last week (good) but printed a red doji that reversed off the recent high (bad).
The $COMPQ is forming a rising wedge, which if broken could lead to lower prices.
One of the main reasons the $COMPQ is weaker is because of the action in $AAPL. Somebody last week said “if you didn’t know the chart was Apple, you would think it was a short.” $AAPL closed below it’s 50ma and looks like it could get to the 620 area (blue rectangle) if it breaks support here. I would like to see an inside consolidation day first to set up a good risk/reward ratio before going to the “dark side” on $AAPL.
Drugs have been hot, and $ALKS is flagging here at 5-year highs.
$CPE was one of the longs that did not trigger from last week and still keeps building a flag.
Hey, bananas may not be sexy, but $CQB is flagging right below a gap resistance level after re-capturing it’s 200ma.
$NFLX keeps trying to prove it is not a “dead stock walking.” It has made a nice run off a triple bottom, and if it can consolidate here for 2-3 days it would set up a nice risk/reward ratio as there is not any real resistance until the gap fill at about $80.00.
For those of you who like to play low-priced stocks, $MERU is basing nicely below resistance after recapturing the 20, 50, and 200ma.
Silver is looking good, but $USLV, the 3x silver ETF is looking even better.
Back to conflicting signals. Drugs have been very strong lately, but $VVUS has lagged since it’s gap up at the first of the year. It’s broken that gap support and made a bear flag which says it could be a short.
Alternative education schools seem to be finding a bottom, with $DV from last week’s list breaking out of a flag pattern. $EDU needs a few more days to consolidate below this gap resistance and then it could be good to go up to $22.00.
And a couple of macro charts to watch…..
Last week we talked about $UNG needing a few days of consolidation below resistance to set up, and that is what we got. A break above the $22.50-ish area with about a buck stop would be a great set up.
I don’t know anything about the Chinese Financial Services industry, but I do know that $FXI is looking like it has found a possible bottom here. A break of the 200ma is a buy.