It is really, really hard to find interesting setups right now as most of the charts I am looking at are over extended or broken. But no matter what the indexes are doing or what is on the front page of the business section you can’t just jump into stocks that are taking off like a runaway train; you have to be patient and wait for setups and good risk/reward entries.
Before we get into the thin gruel that are this week’s ideas, let’s take a look at some more macro charts/ideas.
I’ve been “on” $FXI for a long time, pointing out the pivot low in September of last year as well as the breakout in mid-November. It has now come all the way back down to test that breakout point and is consolidating between the 200ma and support. Keep an eye on this, for as China goes, so go the commodities and materials stocks.
The chart for $UNG actually looks pretty good here and some stocks like $DYN and $NBL are doing well while others such as $CHK and $APA are sucking ass. This illustrates a similar phenomenon that happens with gold and silver stocks; just because the underlying commodity is doing good doesn’t mean that every company in that sector will benefit.
Speaking of $GLD, it fell through some major support on Friday, and as of this post (Sunday night) gold futures are down big.
Two weeks back I highlighted the “stair step” down pattern in $SLV and indicated that it was a short below $27.50 and it is now 8% lower.
What the “F” is going on with $AAPL? It broke out of a long down channel but is in danger of coming back into it with the “line in the sand” of $420.00 very close by. Hard to explain this but I think if it holds that level it is going to rocket, and if it can’t hold that level, it is going to tank hard. Just don’t think it is going to meander sideways around that level long.
$AMZN looks like it is going to break out of a three-month channel, but the fact that it has not moved well with the overall market is reason for pause.
$BIG is looking like it is going to break out of a channel right below a gap resistance level.
$BRCM is consolidating in an ever tightening range after going nowhere for over ten years. My feeling is that this stock is like a guy with whisky dick. It’s going to get there eventually, but it is going to take a long time.
$GE is breaking into five-year highs which has to be good for the overall market….right?
$GOOG broke into all-time highs in February and this pullback to that level is normal. Look for buy on a break above the downtrend line.
I looked up the definition of “bear-flag” and there was a picture of $NDAQ next to it.
I have a buddy who tells me there are internal changes at $ZQK that set it up well for the long run…..but besides that, after breaking resistance it has been consolidating nicely so watch for a break above the downtrend line.
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