Not much change from last week in terms of quality trade setups……it’s very thin.
Let’s first take a look at some macro charts you want to keep your eyes on.
In last week’s “Trade Ideas” I highlighted $UNG as potentially getting ready to break out, and that is exactly what it did. Remember though that it is better to play the underlying than the companies in this industry.
The rally in the markets coincided with the failure of $SKF to breakout in November of last year. It has now done a “double-tap” at this resistance line, and failing to break above that will bode well for the overall market going forward.
$FXI has managed to recover and pop back above its October breakout level, but it is still within a down channel.
Okay, on to the individual charts.
My two themes for this year are casinos and brokers, and though the action has been “sloppy,” $LVS has moved steadily higher since putting in a low in July of last year. I will be looking for a move off the trendline indicated by the ellipse to verify that the trend is still intact.
Something is going on here in $FSLR though there is not a clean setup yet. Watching the area indicated by the square to see if one forms.
Lower highs and a wedging formation below the 200ma make $ELLI look like a short below the lower trendline.
This once hot stock has cooled a bit, but $DDD is forming a mini-flag right below a down trendline setting up a good risk/reward on a breakout.
Don’t know what $CEL does, but it has formed a mini-flag right below a gap resistance level.
$BIG was on the list from last week and is (slowly) breaking out of this flaggish channel-type formation.
$APC is sitting precariously on its trendline with a small consolidation area. A break below that (and the trendline) would be a short to at least the 200ma.
$AMZN was also on the list last week and failed to break out of the this downward channel, but keep it on your radar as long as it holds the bottom trendline.
Insurance companies are looking very toppy. $AIG made a double-top, then broke a trendline, railed up and “kissed” the underside of it, and formed a triple top. A short target would be the 200ma.
Another weak insurance stock, $AFL looks like a short if it can break below this support level.
And of course everybody’s favorite stock to once love and now hate, $AAPL. Next real support on $AAPL is the ellipse area. If it moves down there fast you will want to look for a trade setup similar to what I wrote about in “How To Catch Knives.”
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