I was pretty impressed with the SPX close at the end of the day. I can certainly feel some underlying strength in this market, but I am still considering this market in a correction until the buyers step back in with heavy volume.
Found some great looking charts this evening after running my scans (longs & shorts).
One of the first trades I plan on making tomorrow is starting a Buy-Write in $ARNA. It closed today at $2.10 and I would like to start a long position at $2.10 or cheaper while simultaneously selling May $2.5 covered calls that closed the day bidding at .61! Delta is .35 and Theta -.005. Be aware this stock has earnings on May 8th and routinely disappoints.
ITRI – Poised to clear this descending trend line. Watch for above average volume for a breakout.
ALXN – Working higher off this ascending trend line. Nice risk/reward entry here.
WYNN – Nice consolidating pattern. Watch volume and price action for a breakout to higher levels.
RTN - Holding this one from last week. Breakout watch above $53.15 on heavy volume. Waiting.
PII - Watch this for a move above $81.40 on above average volume.
CVS - Another low risk/reward trade off this ascending trend line.
COV - Watch for a break above $55 on heavy volume.
The scan found fewer solid short setups, but the risk/reward is heavy to the downside.
BLK - Notice this bounce has been on much lighter volume. If buyers don’t step in soon this one will see lower prices.
CMG – Same bounce on lighter volume. This one has been a winning short for me this week.
ROK – Lost support on about 300% average daily selling volume. I expect this one to head lower.
Take note of PCLN – Closed above the descending trend line. Risk/reward to bullish, in my opinion.