Good evening StockBandits!
The FOMC was the main event of the week and today it came and went without much substance to go with the excitement. The indexes were already positive ahead of the 2pm ET announcement, and lifted quietly afterward, but it wasn’t a momentum-based move and had much more of a drifty feel to it. A little dip ahead of the closing bell brought the DJIA back to where it was ahead of the highly-anticipated news, so perhaps traders will sleep on it and come back tomorrow with a bit more resolve one way or the other.
Tonight the indexes are sitting once again right near their highs with a minor dip over the past few days and a recovery day today. The last three sessions we saw minor declines where in each case price still lifted from its session lows, pointing to an attitude of “when in doubt, buy ’em.”
The overall price action of the past few days equates to some much-needed rest, as the basing action allows for share turnover to take place between the flippers and those with longer time horizons. More time spent moving laterally would help bases to further mature, setting up higher-quality patterns for potential plays. ORCL is taking a hit after hours and may weigh on the NAZ a little tomorrow morning, which wouldn’t be a bad thing before a breakout attempt is made.
Remember to submit your chart requests for tomorrow’s Charts on Demand video if you haven’t already done so. Either hit the form inside the member area, or send them via email and I’ll be glad to add them to the list.
Let’s get to the charts.
NAZ – The NAZ returned to short-term resistance today with a solid gain and a finish not far from the high. Volume on the upside remains unimpressive, but this high-level base is still technically bullish. No trend change yet.
SP500 – The S&P rebounded today and now sits just a few points shy of the 52-week high of 1563. A move through there could quite easily result in a test (or break) of the all-time high of 1576, whereas 1530 could serve as short-term support on a dip and there’s still about 2% of room before that would come into view.
RUT – The RUT lifted easily today with a 1% gain to bring it right back toward its high of 954. This index recently broke out from a 38-point range as it cleared 932, which projects a measured move up to 970 if the pattern plays out. The short-term rest is bullish after the 10-day run it had, and there’s still no reason to bet against this index.
DJIA – The DJIA briefly cleared 14539 today but finished the day back beneath that level. Overall this index is just basing at its highs, which is still bullish.
Notable Names:
FDX is a good example of why holding into earnings announcements offers no edge. This stock had been basing within an uptrend, but today gave up about 2 months worth of gains on heavy volume after reporting earnings and guiding lower. Scheduled news often brings surprises, and it’s not always in the direction of the existing trend. This is why I always look to be out of trades ahead of earnings and conference calls.
Why I Use TC2000
JPM is approaching its uptrend line after a minor dip but still sits just 4 days removed from its 52-week high. A break of the trend line – unless it’s extreme – typically just means a change of pace for the trend and it is pretty common after multi-month runs. Therefore, a break below rising support would still need to be followed by a lower low and lower high on this daily chart to truly change the direction of the trend.
SSYS is attempting to recover here after a big correction into February. Since then, the stock has bounced and based, but still isn’t out of the woods. A turn up through the descending trend line at $71.75 would open the door for some short-term strength, although it could be tough sledding on the way back up given the number of folks waiting for a better exit who were caught on the way down.
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.
JBHT is sitting in a tight bull pennant here and I’m looking to get long at $75.05 as the stock clears resistance. I’ll have a protective stop just beneath this pennant and will be looking for a rally similar in size to the past few lifts.
EXP has bounced back from its February dip and has carved out rising support along the way. I’m looking to buy this one if it breaks out at $72.40 with a stop below rising support and will be looking for another similar sized rally to the past few advances. Stocks which move rhythmically tend to make good swing candidates, as it’s common to see price moves mimic prior runs.
CP has based for a few weeks right at the highs and this one may be ready to go again. I’ll get long if this one clears $129 and will set a stop beneath this channel. This stock has been in a very strong uptrend and I’m looking for a similar rally to the previous advance as my first target and allowing for some possible acceleration for a slightly higher final target.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
