Good evening StockBandits!
Tonight’s report is coming out later than usual as I went to a charity function this evening which has put be considerably behind schedule. In order to keep it brief since you’re receiving this late, I’ll hit the highlights via text and try to get right to the charts as quickly as possible tonight. Thank you for your patience.
The indexes largely rested today. The NAZ fared well again, up almost half a percent, thanks to mega-caps AAPL and GOOG each putting up respectable gains. The RUT tagged 960 and posted a new all-time high, while the blue chip DJIA and S&P 500 finished mixed and little-changed. Volume backed off from Friday’s levels, giving greater emphasis to the stretched look of this market.
Bulls haven’t backed off yet, but some healthy profit-taking may be in order soon. We’ve just broken out from trading ranges which could quite easily lead to additional gains going forward, but that would be far more likely if we’re able to see a rest occur first.
Let’s get to the charts.
NAZ – The NAZ is getting into some thin air here, up 7.5% in just 12 sessions. That’s hardly a sustainable pace, and it could be that some profit-taking results in a gap fill from Friday morning if it arrives sooner than later.
SP500 – The S&P continues to hold its breakout from last week here and has a little breathing room down to the 1597 area which had been resistance. I would expect to see that level defended somewhat as initial support on a pullback.
RUT – The RUT keeps edging higher since breaking out and is now up 7% off the mid-April low. This index could certainly stand to rest, and any profit-taking would potentially result in a gap fill to the area of last Thursday’s close at 939. For now, no selling has started.
Notable Names:
AAPL is now $75 off its low and is approaching a prior high which could serve as reason for some rest for this stock. It looks like it has a better shot at creating a higher low on a pullback, if and when it kicks in.
GOOG has run $100 since its mid-April low and now looks pretty stretched to the upside. I would not expect a deep retreat after all this strength, but some rest would certainly do it well.
GS is leaving its descending channel to the upside here and now could start working higher in the coming weeks. The prior high is $159 and will be a big level to clear if approached.
BG was listed here last night and didn’t quite trigger today. I still like this setup for a momentum play rather than a swing, and will look to grab a trade on the long side if it is able to clear $71.50.
CDE is still acting weak and a break below rising support could prompt some selling. Given the distance from the technical sell point to an adequate stop, I would prefer to take this not for a swing but instead for a momentum play on the short side below $14.70.
SLW is working on a bearish wedge here within a downtrend. A stop is just a bit too far away from a technical entry tonight, so I like this more for a momentum play than for a swing. However, the base is tightening daily so even another day or two within the trend lines and this could become a swing candidate for me. If it goes on Tuesday though, I’ll just take the momentum short below $24.00.
DECK sold off hard two weeks ago and since then has only managed to move sideways rather than really bounce. Another day or two in this base could set up a swing, but if it goes on Tuesday I’ll take the momentum short below $53.20 for the next initial move lower without the overnight exposure.
New Swing Trade Candidates:
These stocks look ready for imminent multi-day moves. Pattern confirmation occurs with a move through the entry level. Initial stop and target levels are also provided.
NEM is still trending lower and this small bounce in price was not confirmed by volume. I will be taking this for a swing on the short side if it breaks $32.90 and will have a protective buy stop just above the gap from last week.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
