Good evening StockBandits!
The indexes finished the day split with smaller-caps in the red right out of the gate while the senior averages found their footing following a morning slide. The RUT actually painted a new correction low today as it undercut the April low at 1095, but the Big 3 (NAZ, S&P 500, DJIA) stopped short of creating any new technical developments.
We’re in a divided market right now where the more speculative NAZ and RUT are struggling to maintain a bid, while the blue-chip S&P 500 and DJIA are struggling to maintain an offer. The blue chips have held their ground very well and are within striking distance of all-time highs. The NAZ/RUT keep carving out lower highs under the weight of former leaders turned laggards.
Tomorrow we have more Yellen testimony following a Jobless Claims number in the premarket, so we’ll see if this market is able to convert any of the news into a meaningful move. If not, we can likely expect more back and forth as the trading ranges persist.
It’s still not an easy environment for swing trading, but there are some excellent single-day moves worth taking out there. Last night’s WDAY went $6.30 from the trigger today and CRM moved over $2.30 from its trigger. Those kinds of moves produce nice cash-flow during these times when we’re waiting for better opportunities to get more aggressive on the bigger timeframes.
Let’s get to the charts.
NAZ – The NAZ was weighed down today by pretty much every big stock possible, including TWTR, YHOO, FB, GOOG, AAPL, NFLX, etc. That makes for an uphill battle anytime, but when paired with lower recent highs it’s insurmountable. The low from last week at 4014 was nearly tested today but held, and an afternoon lift brought this index up from its lows into the bell. On the upside, 4185 is still the big level to watch, but remains a long way from current prices.
SP500 – The S&P started to show some downside follow through today, but rebounded mid-morning and stayed positive for the rest of the session. 1883 is the magic number, just a short distance from tonight’s close, so we’ll see if the bulls are able to take it out.
RUT – The RUT led on the way up and it has also been leading on the way down. Today it became the first index among the bunch to undercut the April low, which had been at 1095. We did see a successful test of that area though, as the break was incremental and price was able to rebound rather significantly into the close to finish the day slightly green. Just in case, though, next downside levels to watch on additional weakness are 1082 and 1079 from February and November, respectively.
DJIA – The DJIA rebounded today to avoid a second consecutive decline. This index has only had back-to-back declines once in the last 3 1/2 weeks, so this is some choppy price action to say the least. An upside breakout remains just a relatively short distance away, but until strength can be seen elsewhere in the market this index is unlikely to venture very far.
Notable Names:
WFT was listed here last night for a single-day play but did not trigger. Price remains in the same pattern, so I’m setting it up again for a play on the long side if it can clear $21.50.
ICON is in an uptrend but just pulled back. This is a good way to digest the big move it just made, and alleviates the overbought conditions from just last week. I like this one for a single-day play on the long side if price can clear the trend line at $42.10 to get going again.
MNST is channeling lower and after numerous tests of upper resistance is starting to roll over again. I like this one for a single-day momentum play on the short side if it shows some continuation with a break below $64.90.
LGF is hugging rising support after a few choppy weeks of basing action. Price is resting on the lower trend line of this large triangle, but it’s not a tight enough pattern for me to consider for a swing trade yet due to the very wide stop it would require. Instead, I’ll just grab it for a single-day play on the short side if it breaks $25.35, with some room down to test the recent low.
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.
NLSN is coiling just beneath short-term and intermediate-term resistance here as it digests its most recent rally. A breakout through $47.60 will trigger a buy for me as a swing trade as a new leg up begins. Earnings are already out for the most recent quarter, so this one has some time before the next scheduled news. I’m leaving my 2nd target open for now, so if this one triggers I’ll look to assign a second target once I can gauge momentum.
SAVE just held a support area and now price faces a descending trend line. I like the risk/reward here for a move back up within this multi-month choppy range, so I’ll get long for a swing if price can clear $56.40, looking for a test of the prior two bounce highs as targets.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
