We had a 2-day selloff this week and it happened on fairly big volume. However, I don't think this is the end of the uptrend for the year, and I would suspect in the next few weeks or months we'll make a new high, before any big correction happens. In the near term, I think we'll be chopping in a range for a little while. In any case, we now have some pretty clear boundaries with resistance at ~153 and support at around 151 on the SPY.
Here are some stocks I'm watching for the week:
Long: PANW, INFI, BCOR, ENOC, SVU, OPK, GMCR (triangle consolidation, could go either way)
Bounce: PAY, FOLD, EBIX, TRLA, RNF, MOS, AGU
Short: BGMD, ZLC, LULU, SOHU, KERX (if it breaks 6.50)
Parabolics: MBLX, YY, PRKR, NVGN, TECUA, NTWK, PIKE
Good luck this week and feel free to check out my free chatroom!
Sunday, February 17, 2013
The markets keep pushing higher since my last post 2 weeks ago, and all the same trendlines remain. We've almost reached the first ascending trendline and RSI is getting close to oversold levels on the weekly chart. Perhaps one more week higher, and we should see a pullback. Alternatively, it's possible that we see a small pause this week, before moving higher again next week... Either way, we're still in an uptrend on the weekly chart!
The only thing to take notice of is on the daily chart, where price keeps making higher highs, but volume is decreasing on green days, and RSI, stochastics and MACD are all starting to show some divergences (higher price, lower high on indicator). Additionally, the down days are seeing higher volume lately, and I think it would be very healthy to come back and visit the 20d MA, which hasn't been touched in 2013.
Here are a few stocks I'm watching this week:
Long: OSK, NTAP, TZOO, YPF, KERX, VHC, TA, HMPR, CELG, BMRN
Short: GNK, SIMO, BIDU, PETM, RAX, RPRX
Parabolic short: SPWR, DQ, UNXL, TECUA, INCY, BIOF, EV, PCYC, TRLA, VCLK, ASYS, ROIAK, ATVI
Bounce: HSP, EZCH, PBR, RVBD, END, EHTH
Sunday, February 3, 2013
I appologize for not posting lately, I have just been lazy since the holidays! Anyway, the market has basically been grinding higher since mid-December, and we've had an amazing run in January! It's kinda hard to tell where we're going from here, but from the weekly chart below, I can see the SPY moving higher to the 155-160 area. We might have small pauses along the way, but the market is really strong so I don't see any reasons why we wouldn't push up to 155 at least. On the daily timeframe the SPY is slightly overbought, but not on the weekly timeframe, so there is more room to go higher. And RSI on the weekly has been doing a great job with timing the major rotations in the market, so until that stops working, I would keep an eye on that for your general market trend.
It might be a bit late to go all-in long here if you haven't participated in this rally yet, as the market has already made a big move, but I think if you play a few good setups, and have tight stops, there will still be some opportunities on the long side.
One of the stocks I'm watching is ESI, that is forming a bull flag on the daily chart, and looks ready to break above the 50d MA for the first time in almost 1 year. Every time it tried previously, it failed, so it needs to hold above this time and we might see a powerful move. I'm long 1/2 size and will add if it can break and hold above the 50d MA.
Here are some more ideas for the week:
Long: DISH, PKD, OCN, MOV, ADBE, NAV, TECUA, ZNGA, IQNT, ARO, CRNT, IMUC, ACTV
Short: FSLR, RPRX, EGHT, BKS
Parabolic: MGAM, UIS, BLRX, AGO, TA (could also be a long), GTN (could also be a long), KERX (on bounces),
Red to green: OTT, EDAP, CCUR
Bounce: RIMM, HALO, CLSN,
Good luck this week!