At the beginning of February, I posted that would likely run up to the 155-160 area on the SPY... We've reached that target, so now what? I think the odds of a pull back are pretty good now, but I think we might see one more push to re-test the highs, or perhaps a tiny bit higher this week before a pullback happens. The market is still very strong and the bad news is not creating much panic yet. Also, I think a failed breakout to new highs would be the perfect storm to get more people long and then a selloff could happen. This is just an idea, and might not happen... Either way, keep an eye on the trendlines and the box pictured below. We will likely trade within this box for several days.
There were quite a few good looking short setups this week, and I'll be watching them if we get any weakness in the market this week. Here are some stocks I'm watching for the week:
Long: TOL, ROVI, GMCR, OPEN, CVLT, SBGI, NTWK, TA, GME, HIMX, HOLX, TVL, ASTX
Bounce: WAC, HXM, MXWL, CHKR, PCYC
Gap fill: ELN, PAY
Short: WPRT, RNF, LULU, GLNG, PETM, VHC, MS, HFC, RAX. MTGE
Parabolic: CZR, YRCW, UNXL, FLO, AWAY, NAT, EVC, EGLE, ANAC