Last week we printed a bunch of dojis in a row, marking some indecision in the market. On the SPY daily chart, we're consolidating in a flag, or ascending triangle. All the moving averages, except for the 50d MA are curving up, and it seems like we might try to make a run to the highs by the end of the year. Typically December is a good month for equities, especially small caps which usually run wild into the end of the year! The only thing that concerns me is that we are slightly overbought, particularly on the Russell and the QQQs are weak in comparison to the other indices. I'm positioned slightly long, but I would get concerned if we broke below the 50d again though and even more if we breakdown from this triangle consolidation...
Here are some stocks I'm watching for the week:
Long: MNST, SMBL, GPRE, CNC, KLAC, LULU, HUN, FST, SIG, IDIX, MCP, Z, COV, BTH, AMD, CYBX
Red/green: HUM, MHP
In play: GMCR, SWHC, GRPN, FB
Bounce: FCX, LFVN
Short: HES, TOL, LEN, JOBS, NOV, OSTK, ZLC, CALL, SINA, PCYC
Parabolic short: CBMX, MHP, SD, GTIM, UNXL, GNW, BEAM, MU, RKUS
Send me a tweet if you want more info on how I play these setups @cath_campbell
Good luck this week!