Good evening StockBandits!
The indexes gapped higher to start the holiday-shortened week based on a lack of action toward Syria. Each of them were up roughly 1% in the opening minutes of the day, but in every case that marked the high for the session with a very short-lived bounce. Once again, the strength was used for selling as traders raised cash and remounted shorts into higher prices. Stocks drifted back toward the flat line before an afternoon rebound left them modestly green by the closing bell.
Needless to say, it was far from an impressive performance. Last night’s Blueprint headline was “In the Habit” and today we saw yet another example of that play out. It’s becoming routine to see strength utilized for selling, which is to say we should expect more of the same until it changes. Eventually it will, but right now the bulls can’t seem to get out of their own way. That’s cause for maintaining a bearish bias for now while we wait to see how long the correction will last.
Headline risk is the wildcard right now, as we have a handful of issues on the table on the geopolitical front. Since we can’t predict or foresee how those items will play out (or when), it’s important to maintain a focus on the charts. The price action will serve as our guide, and as key levels are broken or cleared, we’ll have fresh reasons to either maintain or flip the bearish bias.
Tonight there are very few charts of interest when it comes to new plays, so I’m sticking with abbreviated timeframes with the setups I’m eyeing for tomorrow. As better-defined opportunities surface, I won’t hesitate to add to my swing exposure, but tonight’s candidates are simply single-day candidates for me.
Let’s get to the charts.
NAZ – The NAZ spent another day above 3573 support, but the weak finish leaves ample doubt. For now, it’s still range-bound but a break of support could bring a swift decline to fill the July gap to 3520.
SP500 – The S&P held 1627 support today, but finished 12 points off its session high. That’s not an exhibition of strength by any means, and it leaves this chart with a low-level base tonight yet again. A break below 1627 and we could see 1612-1615 reached relatively quickly.
RUT – The RUT got within 1 point of key support today and was able to lift a bit from there, but it still finished about 1% off its session high from the morning. A break below the May high of 1008 is still the next technical event to watch for in this small cap index.
DJIA – The DJIA couldn’t reclaim 14887 today but held narrowly above 14760 as well. That leaves this senior index in a tight, low-level consolidation zone. A downside break and the June low at 14551 could come quickly into view.
Notable Names:
PCYC is still building this ascending triangle but I’d like to see it tighten further before considering it for a swing. It may soon offer a momentum play on an upside breakout, but as of tonight still sits a few points away. It’s on watch for me.
NFLX is a high-priced stock but a NAZ leader which is worth keeping on the radar for that reason alone. Tonight it’s sitting just shy of new high territory. I’m not looking to trade this one, just felt the chart was worth pointing out given its relative strength and the way it has ignored the recent market weakness.
TASR is trying to pause but has seen plenty of volatility in recent sessions since its huge rally over the past few weeks. I’d like to see this one base a bit more beneath $12.25 before considering it for a breakout play.
UA is picking up here and could break out as soon as tomorrow. I like this one for a momentum play on the long side if it can clear $74.70, although a swing stop is too far away for me.
SINA is still inside its descending channel and a breakout through $80.50 could produce a quick pop. I like it for a momentum play for Wednesday if it can clear that level.
CNQR saw an uptick in volume today as price pushed slightly higher to edge closer to the descending trend line. A break above $100 could generate interest, so I’ll take this one Wednesday for a momentum play if it’s able to clear that level as it could easily head back toward the recent high near $104.
ALK is a bit of a sloppy mover but in the past few weeks it has respected this support zone. Tonight it’s resting just above it and a break below $55.95 would interest me for a momentum play on the short side for Wednesday’s session.
FSLR has been listed here the past few nights but hasn’t triggered an entry yet. I’m still interested in a play, so I’m relisting it. Still looking to grab it for a momentum play on the short side if it breaks $36.50 on Wednesday.
New Swing Trade Candidates:
No new swings added tonight, sticking with existing positions and candidates while waiting for new high-quality setups.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
