It looks like the fiscal cliff issue is behind us (or technically still in front of us), and that caused the markets to roar, sending many of last weeks picks up nicely. $AIR was up 11%, $SCHW was up 9%, $ETFC was up 6%, and $GS was up 7%, but it’s not hard to do well when the $SPX tacks on sixty-five handles.
Let’s start this week off with some macro charts and a little review.
This chart is all good news as the $RUT is breaking into all-time highs.
The $SPX chart is good in that it’s at four-year highs, but there is going to be a lot of resistance to overcome in between the channels that mark a double-top with a spread of seven years.
Back in early November I highlight a breakout point in $SKF, the UltraShort Financials ETF, that would be trouble it succeeded (indicated by the arrow). Fortunately it failed and has continue to crumble.
This has been confirmed as its analog ETF, the $XLF is moving into four-year highs. If this holds up it is bullish for the Financial Sector as well as the markets in general.
As most of the world was declaring the death of China, I pointed out in an early October post that the $FXI looked like it put a bottom in and was getting ready to break out. Then again in a mid-November post I mentioned that the $FXI had successfully tested its breakout point and 200ma and looked poised to go higher, which it has.
$XHB the homebuilders ETF is breaking in to five-year high territory after consolidating in a three-month channel.
$TOL broke out with the ETF, but still can be caught here, using the last three day’s bars as your risk/reward on a breakout above the $33.95 area.
$DHI is looking good, but yet to break out. You can use the last three bars as the risk/reward on a breakout above the $20.80 area.
$CF is getting squeezed between it’s 200ma and the down sloping trendline. The chart looks pretty good as it is less than 3% below all-time highs.
As I have said before, $POT sucks. I hate trading that stock. But…..it does look like it might be breaking a year-long down trend. If it does, it will need some sideways work, but keep an eye on it this year.
$MU looked like it was ready to go back in August, but it failed. Since then it has tested the breakout around $7.00 twice more for a total of four times. A couple of days of sideways action would set up a good risk/reward trade here.
Don’t look now but $AMZN is near all-time highs. A couple of days consolidation in the indicated box would set up a sweet trade.
There are A LOT of bag holders in this stock. Having said that, the $28.90 break in $FB could send the stock racing higher.
$DXCM is looking nice here.
After gaping up, $STMP is forming a progressively more narrow range above it’s 20/50/200 ma. Watch for a break above $26.40.
For bottom pickers, $ZNGA is giving you probably the best risk/reward this dog has ever had on a break above $2.75. Arf! Arf!
Since I first highlighted it in early August, $LVS has grinded higher, providing numerous trading opportunities along the way. I wouldn’t chase here, but a successful re-test of the recent breakout level would be a buy.
Yeah, I know Steve Wozniak is somehow associated with this company. No matter, $FIO looks like a short on a break below the trendline.
Don’t know what $FIRE does, but the chart looks like it is rolling over here and a short below the trendline.