Good evening StockBandits!
Monday optimism surfaced today to kick off the new week in a favorable way for the bulls as last week’s pullback got met with bids. For the NAZ, that meant that the test of the 2961 support area was successful, and today it was healthy to see a lift within the range (thanks of course to the heavyweight AAPL). The DJIA is again within spitting distance of 13300, and both the S&P 500 and RUT were able to post their best finishes today since October.
In sifting through the charts tonight, I’m finding quite a few bullish setups. That’s evident not just in the lopsided watchlist posted below, but also in how many stocks have benefited from the short-term pullback of last week. A little rest goes a long way toward building quality bases, and those are beginning to surface at this stage.
I’m still keeping my timeframes short due to the range-bound market and the end of December upon is (with all the cross-currents I’ve been mentioning), and I will be trading smaller as a result. Nonetheless, there are some opportunities out there so let’s get to them.
Tonight I’m going with the written format as I’m feeling under the weather and my voice is unfit for talking. I’ll run through a few of the indexes here first, cover some stocks which belong on the radar, and then share some new plays I’m eyeing for tomorrow’s session.
NAZ – The NAZ saw 2961 defended last week as support (again), and now the bulls are doing their part with this lift within the short-term range. 3040 is still the big level for this index, but another day like today and it’s through it.
SP500 – The S&P reclaimed 1426 today by more than just 2 points, which is an improvement from last week. Tonight the blue chips finished at 1430, paving the way for a potential run toward the September highs in the coming weeks. The news flow certainly has potential to interfere with that, but technically this index is shaping up and has put in adequate rest to resume its recovery. The big key now will be follow through instead of a failure at this area.
RUT – The RUT has held up quite well of late and today put together a solid rally after a 3-day retreat last week to fill the 826 gap from last Monday’s close. It now appears intent on pushing north to test prior relative highs from October at 842 and 853, respectively. Here again, follow through will now be of utmost importance.
DJIA – The DJIA couldn’t quite finish above 13300 last week, and subsequently saw some selling. Today, the senior index was strong enough to post a triple-digit gain which puts it again within reach of that important level. A finish above 13300 brings the 13600 range into view as next resistance from September and October.
Stocks to Watch (need more time for patterns/bases to mature):
Plays for tomorrow:
Stocks I’m looking to trade in tomorrow’s session.
VMC is trying to clear trend line resistance here after a mild pullback which held above the prior breakout. This is very positive price action which favors the bulls. I’m interested in getting long if this one clears $53 for a quick ride on Tuesday.
SSYS is sitting at trend line resistance tonight after creating a higher low and then rallying today almost 4%. A push past the trend line sets this one free with room to run toward the previous high, so I’m watching for a breakout through $71.40 to trigger a buy on Tuesday. This will just be a day trade for me rather than an overnight position.
JPM is poised for a pop if it can clear $43.60 resistance and follow the likes of C and BAC from today. I’m interested in grabbing the initial move higher, and will be a buyer tomorrow for a single-day play if that level is cleared. A push past the trend line should invite more buyers into the picture.
FISV is sitting in a bull pennant it created over the past couple of weeks and could get going any day now. This stock had excellent momentum prior to the rest phase, so perhaps it can regain some of that strength with some follow through here. A push past $81.30 paves the way for a pop, so I’ll be a buyer there to catch a ride for Tuesday’s session.
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Trades Overview:
This list is a look at our current & potential swing trading positions. Stocks we are already in have “triggered”, while those we are considering for plays have not triggered. Click post title to view print-friendly link.
No changes
Open Position Notes:
No open positions – 100% cash waiting for new entries.
Closed Positions:
No closed positions.
