Good evening StockBandits!
The indexes finished green across the board today, kicking off the new week where the last one left off. The gains weren’t impressive, but the bulls kept the pressure on by winning yet another day. The small caps led again, the blue chips made new all-time highs, and the NAZ was able to clear another hurdle to move within 1% of its March high.
There’s a collective curiosity right now about when this rally will finally relent. Some traders feel left behind, some have been caught short, and some are overstaying their welcome (even if they’re still stacking up profits). There has been plenty of choppiness since the spring lows were established, but we’ve seen a big recovery along the way.
In the past few weeks, the action has been heating up, and at this point any of the index charts just carry less appeal until they can put in some rest. That’s leaving plenty of skeptics sidelined on an overnight basis, but some two-way price action would go a long way toward improving this tape. Pretty much anyone with respect for risk is reluctant right now to make aggressive buys, but that will likely remain the case until the bulls are willing to let off the accelerator.
Let’s get to the charts.
NAZ – The NAZ edged just past 4344 today, clearing the mid-March bounce high by only a small amount perhaps just to prove a point. Price backed off a little into the bell, but it was another solid showing for the bulls with good volume. This index is up 120 points from the low of just 4 sessions ago, and the spring high is close by, making this a good area technically for some rest.
SP500 – The S&P saw a recently-rare development today with a finish more than a point off the session high. Since May 16th (when the now 13-for-16 run began), we’ve only seen that happen a few times. Is this index finally starting to fatigue a bit after reaching high altitude? We’ll find out soon, but I’d be surprised if the bulls let their dress blow up here after such aggressive buying in the past few weeks.
RUT – The RUT added almost another 1% today as it created a bit more space between current prices and the 1160 level it cleared on Friday. That gives it a little breathing room which may be needed after this 4 1/2-day spike higher of more than 5.4%. There’s also an unfilled gap to 1153 from last Thursday’s close which a pullback may gravitate toward.
DJIA – The DJIA didn’t do much today but it did make another new all-time high and it did finish green again. The 16735 area will need to hold on a dip if one arrives, but otherwise this index remains in good shape. Volume is tapering off and after a 600-point run in 13 sessions right out of a choppy trading range, this index may finally be readying for some rest.
Notable Names:
AAPL traded post-split today but it didn’t slow down, gaining for the session and also from the opening print to the closing bell. This stock seems bent on challenging triple-digit territory to potentially test the all-time high ($100.75), but the move is steep and an entry here just isn’t warranted based on that alone.
SMH made it 15-for-16 today with another advance, but price finished nearer the low of the day than the high, so it may finally be getting tired. Volume also spiked today, suggesting considerable turnover in today’s session.
CP has been running parabolic but today it finally paused after making another new high. This chart almost resembles the .com charts of 1999-2000, but it’s just a railroad stock and not anything cutting-edge. Volume may also be signaling a bit of a crescendo here as well, so we’ll see if this one can do some backing and filling over the coming days.
GLW is nearing the apex of an ascending triangle pattern here and belongs on watch. Price isn’t perking up and neither is volume, so any downside resolution to this pattern could get met with some rather intense selling if overhead resistance holds. No play here for me, just a notable chart I wanted to share.
ISIS is carving out some higher lows since bottoming last month and tonight it’s facing resistance with potential for another higher high. This is a biotech and I’m not interested in an overnight, but it does look good to me for a single-day play on the long side if price can clear the hurdle at $31.60.
TWTR is another recovery candidate which has been carving out some higher lows in recent weeks. The pattern is still a little loose but short-term resistance is well-defined, so I’ll grab it for a single-day play on the long side if price can make a new recovery high at $35.25 on Tuesday.
ABX is stalling out after a feeble bounce attempt within the downtrend and may soon roll back over. I’m watching rising support at the trend line for a potential break. If this one undercuts $15.80 on Tuesday, I’ll grab it for a single-day play on the short side to participate in the next initial move lower.
N is a volatile stock and it just lifted 4 straight sessions on weak volume. There’s now a well-defined rising trend line of support, which if broken, could give this short-term bounce the look of a lower high on the daily chart. I like this one for a single-day play on the short side for Tuesday if price breaks that trend line at $78.50.
New Swing Trade Candidates:
No new swing candidates tonight.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
