Good evening StockBandits!
The S&P 500 is on a new streak – not the kind of consecutive advances or declines, but a streak of consecutive days with closes on different sides of flat from the previous session. Today marked the 6th straight session where the S&P reversed direction from the previous session, highlighting the lack of follow through of late.
It’s spring break for some, it’s a holiday-shortened week for us all, and the indexes are each still caught in trading ranges. None of those things are lending a hand to lasting momentum right now, which really is making for some choppy price action. This morning we saw stocks open weak in an apparent attempt to move toward the lower end of the short-term range, but rather quickly they found their footing and then spent much of the remainder of the session grinding their way back up to eliminate much of or all of the morning’s losses. In the end, we finished about flat.
As we head into Thursday, it’s the last trading day of the week. Spring is arriving for many of us (green grass and budding trees here in TX), which means warmer weather and other activities calling traders away from their screens ahead of a 3-day weekend. With some morning econ numbers due out tomorrow morning, that’s likely to determine the early direction. Otherwise, I would expect the volume to taper off as the day wears on, particularly if price fails to exhibit momentum. Once again, the back-and-forth nature of the market in recent sessions has kept many bases intact but is lending to very few stocks looking like they’re itching to go. I’m adding one swing candidate tonight but otherwise sticking with the current list.
Let’s get to the charts.
NAZ – The NAZ climbed 1% off its session low to the closing bell today to finish just 7 points shy of its high. The bulls have a great shot at producing a breakout, although they’ve faced similar opportunities over the last couple of weeks and have opted not to seize them.
SP500 – The S&P is just a couple of points from a breakout here, just as it has been on numerous occasions in the past 3 weeks. Volume is already falling off, so a breakout on Thursday ahead of a long weekend could come with limited participation and be viewed as a bit suspect. Nonetheless, this high base within an uptrend is bullish and the all-time highs are just 14 points away.
RUT – The RUT kept the churn alive today by finishing once again inside its channel, just 4 points beneath its recent high. This index could be facing the 970’s in short order if we see a breakout, but new highs must be made.
DJIA – The DJIA stayed inside its tight channel today with a modest decline on light volume. This index could quite easily run again but the bulls have to produce a push through 14563 to kickstart it.
Notable Names:
HOG has pulled back quietly to uptrend support once again here and this offers an opportunity for this stock to carve out yet another higher low. A better-defined pattern would appeal to me more, but the trend remains up.
JCP is trying to stabilize here after pulling back steadily for more than a week, giving it the chance to carve out a higher short-term low after a major correction off the February high. A turn up through the short-term trend line at $15.25 offers momentum players a setup for a bounce, although after considerable technical damage this one is likely to see plenty more volatility in the days ahead.
PDCE is pulling back against a key level and another day between these trend lines would interest me a great deal for a swing. I’m reluctant to list it just yet and will review it again this weekend, as that would mean a slightly lower trigger price with the same stop loss to give it a bit less risk.
GG is holding above key support after a multi-month correction and a few weeks of stabilization. A turn up may catch a quick bid for a bounce from here, although this one is still not showing bullish signs to warrant a swing for me.
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.
RRC is still trending higher and has spent a little time moving laterally here of late. A turn up through $83.25 would mark a new high for this stock and trigger a buy for me as a new leg up begins.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
