Good evening StockBandits!
The indexes rebounded slightly today to recover a portion of what was given back in Monday’s meltdown. Volume remained lackluster, however, which is probably indicative of what we could see for the next 1 1/2 weeks until July 4th is well behind us. Nonetheless, buyers stepped in and the averages were able to avoid a follow-through decline day.
The daily charts of the indexes have some good things going for them with a pair of short-term higher lows. That shows us that dips are finding buyers, and there’s still ample room down to the June lows. The longer that remains the case, the better the odds become for the current pullback to result in a higher low for the intermediate-term. In fact, I had a headline article at MarketWatch today with some big-picture thoughts along those lines you might also find useful, here is the link.
I’m seeing some individual charts which are showing constructive action, but with a handful of current positions and the market struggling to show day-to-day continuation, I’m reluctant to add to my current exposure until something comes along which is truly compelling. For tonight, there are a few setups of interest but I’m looking to exercise some patience here as we come into what I expect to be a light-volume period given the tendency of July 4th week as traders step away. As this week progresses, I expect things to thin out further, so I’m staying selective here.
I’ll run through a few of the indexes here and then share some new plays I’m eyeing.
NAZ – The NAZ stabilized today to avoid a follow through decline, thus creating a potential 2nd higher short-term low.
SP500 – The S&P held above 1294 today to post a modest advance, but needs to clear 1335 again for the bulls to regain some traction.
RUT – The RUT held its ground today but sits beneath a pair of short-term levels here despite a couple of higher lows since early-June.
DJIA – The DJIA posted a modest bounce today with quiet volume. This index will need to get back over the hump at 12700 and then 12876 in order to help confirm a higher low on this dip.
Charts of Interest:
Below are some charts of interest, from market leaders to example charts:
EBAY is showing some positive technical signs here as it pulled back to test (and hold) its breakout zone. This stock looks poised to continue higher even if it is a slow mover these days.
GLD has been unable to climb higher with every bounce resulting in a lower high. Longer-term support recently held but may get tested again.
AMZN is slowly working its way higher after pulling back and then holding a fair amount of its earnings gap. Short-term higher lows are in place here, which is positive to see.
Watch List & Short-term Setups:
Below are stocks which are starting to set up but which are not quite ready for multi-day plays. These may provide short-term moves if the levels highlighted below are crossed, but should remain on watch a bit longer for those with multi-day to multi-week timeframes.
THLD has approached the upper end of this channel and may attempt to break out soon. A push through $7.55 paves the way for higher prices, although I’m only interested in a quick play here given the proximity of a natural stop loss is so far away.
ROST is poised to lift again here after pulling back to test previous resistance and finding support there. A turn up through the small trend line at $66.70 would interest me for a quick trade, although I’m not intrigued enough by this setup to add overnight exposure to my existing positions.
VRSN is rallying back up to short-term resistance here and may push through soon. If so, look for a quick pop as momentum traders become involved again.
LNKD is facing resistance here and could catch a quick ride higher if it’s able to clear $107.35. This stock recently failed to break down from a bearish rising channel, so the bulls are still in charge here. Resistance from the spring looms not far above, however, so I’m not considering this for a swing here.
FFIV is still in danger of breaking down so it remains on my radar for a quick short sale if it undercuts $95.
New Swing Trades:
These are the stocks I’m setting up for new plays. I will wait for my trigger price before entering, and all stop and target levels are provided below. For those of you who are new here, please see the Swing Trading Strategy for more details on how I manage these trades.
No new swing candidates tonight.
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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.
UPL & JBHT triggered
Open Position Notes:
CINF turned nicely higher today after some recent weakness, and I like how the stock got defended. Today’s move wasn’t impressive, but it came at a good time for the stock after failing its breakout. It’s now starting to turn back up, so let’s see how it’s treated if it is able to challenge the highs from last week.
NFLX continues to disappoint here with a lack of upside follow through and generally weak action. Today it ignored market strength and finished fractionally lower. I’m staying with it for the time being, but would like to evaluate the price action on another attempt at a turn higher from here as it looks like it could run if it’s able to catch a bid.
UPL triggered a buy today as it made a multi-day high to clear the trend line at $21.40. The stock was able to move slightly higher but drifted back to finish right near the breakout zone. Volume upticked a bit, and I like that it made a new intraday and closing high to reach its best levels in almost 3 months. Now it needs to follow through.
JBHT turned up this morning to trigger a buy, pulled back to hesitate, then finished positive. My concern with today’s action was the lack of volume and the stock’s inability to post a strong finish. I’ll give it another day or two and see how it acts, as I do like the setup here and the potential it looks to have.
Closed Positions:
No closed positions.
