I was really looking for a pullback last week and on Monday morning it looked like it was starting. But the market is incredibly strong right now and we ended the week higher. That said, if you have stocks with nice profits in them, I would be starting to pare them back a bit and raise cash.
One of my themes this year is that the retail investor is going to return to the markets, which will be good for the brokers. Since I highlighted these charts six weeks ago, $SCHW and $ETFC are each up over 20%.
Now on to this week’s ideas.
Late last year I talked about the biotechs completing a pullback and starting to set back up again. That is what $ABT has done here after bouncing off its 200ma twice. Needs some sideways work first in the area noted by the oval before playing a breakout.
Great risk/reward zone setup here on $AGU as it gets ready to break into five-year highs.
Energy has been getting hot this year and that move may have helped $APA find a bottom. Good risk/reward range for a break out above its 200ma.
$BAX is a holdover from last week’s list. The pattern still looks constructive as it bases below all-time highs.
Don’t know what $BCOR does, but the stock looks like a short here right below it’s 200ma.
Tight risk/reward range here as $CRAY breaks into eight-year highs.
This flag pattern right below a gap resistance on $DD is interesting. Often a break above both the 200ma and a resistance level can start a powerful move.
If you have been bottom fishing on $DECK, this might be the spot to try it if it can break above the 200ma and resistance level.
$EBAY is pretty extended, but if you want to try it as it goes to eight-year highs, here is a well-defined risk/reward range to play it.
$ECL is another one which I have no idea what it does, but basing below all-time highs here is good.
Don’t look now but $HD is flagging right below ten-year highs. This stocks’ move is a great sign for the economy as a whole.
Another energy stock that looks like it has bottomed. $NBR has a very tight range here to use as risk/reward on a break over $17.00.
Nice basing here in $PH right below all-time highs.
$STT has moved up from $47.00 to the $56.00 area very quickly, but this tight basing gives you a good risk/reward range if you want to try and catch the next move.
$YHOO has been on fire since late last year, but I would look for a weak candle in the noted area to short it.
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