The markets are tough right now. Sounds crazy right, as they have been going up, up, and uh….oh yeah UP! But think about it, if you are trying to short you have been getting your head handed to you, and unless you have open positions that you have been riding, the markets are pretty extended and it is hard to initiate new longs here. And this weeks scan of the charts reflects this conflict.
Most charts are extended or broken, with a definite lack of good set ups (i.e. bases, clear breakout or pullback points, etc.) and top-tier companies to consider. In fact many of the charts this week are more macro in character.
But no matter how much the markets are due for a real correction, you have to follow the charts and trade what you see. I however would be keeping my stops a bit tight on anything new you initiate at this time. Okay, here we go….
Were you look up “dog” in the dictionary there is a chart of $ZNGA. That being said, the stock has recently broken above a gap resistance and the 200ma where it is consolidating now. A break above $3.75 could get you to $4.90 at the gap fill.
I see dead people. Well not really, but $SCI is the largest cemetery conglomerate in the world. The stock is a slow mover but in a good uptrend and basing at 12-year highs.
If $PRU could get some sideways work in the area indicated by the oval, I would like this on a break over resistance of the $60.00 level.
Don’t know what they do, but $PLL is holding strong basing at all-time highs here.
Another one at all-time highs. $NBL is coming out of a bull flag pattern and you could use Friday’s green hammer as your risk/reward to get long.
What I like about $MON is how it barely budged in the recent mini-correction compared to industry related stocks like $MOS, $POT, and $AGU. That is good relative strength and as long as the whole sector doesn’t fall apart, it should be the leader in the next move up.
Tough, tough stock to own/trade in the short-term, but in the longer term $MA is a star having gone up 150% in two years and basing at all-time highs. It’s giving you an objective level to get long here, but don’t expect an easy ride.
Nicely riding it’s 50ma higher, $LPX is looking strong at 6-year highs
$DG looks like it is coming out of an 8-month donwtrend here, but was stopped by the 200ma. If it can consolidate in the box indicated, that would set up a nice move back over the 200ma with a buy above the pivot of $49.20 give or take.
Out in SoCal they are putting these up on every street corner which is maybe why the stock is at an all-time high. None the less, $CVS is basing nicely here.
We are about to finally get into the “post-Aubrey” era with $CHK which may change the character of this stock. Some basing in the oval area and then a break above $21.70 would get me interested.
One of those macro moves I was talking about. $BWA has just completed a huge “W” pattern which often indicates higher prices to come. Some sideways work in the oval area would set up a good risk/reward to get long.
Another macro stock. $BRCM has been in a progressively narrowing range for the last year, and pretty soon it may emerge to the upside. A measure move would take it to the $45.00 area, although it would be a long and slow move.
Choppy and gappy, but something about the $BCOR chart intrigues me. Some consolidation in the indicated oval would set up a good risk/reward entry.
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