Watchlist for the week of Feb 4-8

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!