Happy Father’s Day StockBandits!
Before I get into the market discussion and trades, I just want to say up front that if you are a Dad, I sincerely hope that your day has been a good one. It’s a tremendous opportunity and it comes with truly massive responsibility, so “Dad” is not a label to take lightly! I hope you’ve been able to speak or spend time with your kids today and pour some love and encouragement on them, no matter what age – they need it from you!
Turning to the market, it may be summer vacation time but the bulls certainly have not left town. We did see a mid-week pullback last week, but the bears still know who their daddy is for now. To the credit of the bulls, the dip came on light volume and there was no significant technical damage which accompanied the decline. We also saw a bounce ahead of the weekend, and although it wasn’t impressive, the buyers stepped in to stop the bleeding. Sometimes the presence of the dominating side of the market – in this case the buyers – is enough. With some prior resistance levels having just served as support, the bulls again appear to be set up for more of the same.
That of course does not mean the market’s immune from additional selling or a meaningful shift of direction, as anything is possible in the market at any time. However, the bulls continue to do what they need to do in order to stay in charge. Having lost the week, they way in which they did it still favored them, which is saying a lot.
In my chart work this weekend, I continue to find very few charts which can be classified as bearish. Such market strength just doesn’t allow for much downside, and that has been the case of late. On the bullish side, many charts remain in uptrends but not necessarily in good positions to buy. The expectation for lasting moves in most cases just isn’t there given the extended nature of the charts. As a result, I’m again looking at single-day plays as we head into Monday.
For the record, I’d love to be more active on a swing timeframe as well, but when the high-quality setups aren’t there, I’ve learned over the years not to force positions or lower my standards. So, I’ll stick with what the market is offering and remain patient while waiting for new opportunities to surface.
Let’s get to the charts.
NAZ – The NAZ has settled into a similar short-term base to the one we saw from late-May into the first few days of June. Price is caught between a pair of levels at 4286 and 4344, and each day spent inside the range will be of benefit to digest the recent lift. There was a small gap filled last week on Thursday, and then strength returned on Friday, which is bullish. Overall, this looks to simply be a rest phase within the overall uptrend, so we’ll see if 4344 gets cleared again soon.
SP500 – The S&P put together three consecutive declines last week for the first time in over 2 months. The early-June congestion area was tested and we saw a modest bounce Friday to stop the bleeding. There’s still lots of room for a decline in this index before it would do any technical damage, but it will head into Monday just 19 points off the all-time high.
RUT – The RUT pulled back to test 1160 last week and held, thanks to an upside reversal in Friday’s session. 1179 is the next upside level to watch, followed by 1193, two prior bounce highs. The best thing going for this index is the pair of higher lows it currently has in place which headline the technical improvement of the past few weeks.
DJIA – The DJIA gave up a little ground last week en route to a pullback test of the 16735 breakout zone. Price got slightly beneath it but reclaimed it by Friday’s closing bell, leaving it looking like a successful test has occurred. We’ll see if it can hold, but so far, so good for the bulls.
Notable Names:
WFT has pulled back quietly for the past week off the high, creating a small descending trend line just overhead. A turn back up through $22.60 would break that trend line and allow price to lift once again. I like this one for a single-day play to participate in the next pop.
TEVA is challenging resistance here and a push through $52.50 gives it room to rally back toward the spring high. There’s some rising support but it’s not near price, so I’d prefer to just take this one for a single-day play on the long side if it can clear the hurdle.
LO is wedging here and price is now starting to pressure the upper trend line. A move through $61.50 could spark a quick lift in this stock, in which case I’d like to grab it for a single-day play on the long side. The last two lifts have been 1-2 days each, so I’m only interested in the initial move if it goes.
CAMP is still on my radar just as it has been for the past few sessions. It may need a little more time, but I’ll be looking to grab it for a single-day play on the long side if price can clear $20.05 to make a new recovery high.
LNG is trying to stabilize here after a short-term pullback off the high following a huge spike higher. This one could quickly gather momentum again, but the duration of this rest leaves me wondering if it can move like it did a few weeks ago. If price clears $67.40, I’ll take it for a single-day play on the long side.
New Swing Trade Candidates:
No new swing candidates tonight, still waiting for higher-quality bases with sound risk/reward profiles.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
OK Jeff
I’m ready to take a shot! I am going to have the attitude that your aggressive marketing is a reflection of your confidence that your service can add real value to traders like me who want to learn to trade better and be more consistent. Therefore, I’m signing up. This is the first and only trading service I have ever used, I hope it will be the last. Regards
Jerry
Sounds great Jerry, I’m glad you’re here and hope you’ll let me know how I can help out anytime you need it. Welcome!
On a stock like CAMP Do you place a buy stop above $20.05….set an alert or just watch price? If this isn’t the proper place to ask questions let me know as this all new to me thanks.
I place my buy stop at that level and leave it intact for most of the day. Typically as the final half hour or so approaches, I will cancel the order since there’s such limited time for it to make a move. Yes, this is a great place to ask questions so feel free to keep them coming 🙂