Last week the 200d MA proved to be too much resistance and we fell back into a melee of moving averages. The daily chart of the SPY is forming a triangle consolidation, which is very positive in my opinion. Price is consolidating, the daily ATR is decreasing, and volatility has also been decreasing. It seems to me that a breakout or breakdown of this triangle consolidation could lead to a possible trending environment! I don't want to get excited too early, so just watch that triangle! A great r/r trade can be taken at either of those trendlines. I'm looking ~120 this week to possibly get long for a test of the upper trendline.
On the 15 min chart, wait for a break of this descending channel or wedge for a move to the upside. Alternatively, one can play the trendline bounces. Notice that we're forming a mini-bear flag, so a breakdown of this (level ~121.40) would signal more downside for now.
Also, check out the sentiment chart on Laser Trader's blog; the similarity with the SPY chart is uncanny!
cI found a lot of pretty good setups, which has been a warning sign for me lately, so just be careful out there. A lot of breakouts are failing, so I have been trying to buy in anticipation of a b/o, and if the b/o fails, then I get out around breakeven... Here's a few stocks I'm watching this week:
Long: BANR, FSII, KFN, SKH, LDK, RAS, MENT, SUNH, SNTA, OCZ, CTCT, AUDC, TRGT, GTIV, CX, AVID.
Short: ECPG, GMCR, CVGI, STI
Bounce: I'll be watching gold and gold miners for a possible relief bounce this week... check out NUGT a 3x ETF for Gold miners. Also watching these for potential bounces: MELA, ITMN, LRN, SGI, LPS.