Watchlist 7.30.12 | The Beginning is the End

After last weeks run the $SPX has worked itself out of the cloud and looks much healthier. The cloud gave us a bull twist and we are testing a descending trend line. Consolidation below this trend line and formation of a bull flag would allow this move to digest.

The stock bond ratio made a healthy move last week.

Bullish/Bearish scan ratio was 5:1. Here are my favorite setups going into the week:

XOM – We are just below long term resistance. Watch $88.15 with increased volume to start the next leg higher.

CHK – Worked itself above the cloud last week. Higher lows on the daily stochastics. Might be ready to start building a long position here. Needs to clear this descending channel with conviction.

DLTR – Tested this descending trend line on Friday. A push above it with above average volume will start a technical trend change.

V – Had a breakout trigger on Friday but I didn’t start a position. If we can clear it again/stay above it Monday with above average volume I will start a position. Watching $128.85 then $131.

SHW – Was watching this one at $134 on Thursday & Friday. I wasn’t impressed with the volume Friday, I am expecting another opportunity for $134 early this week.

PCYC – Nice bull flag forming, if we can start the next leg higher it should be an easy 5 point gain.

HIBB – Break out trigger of $61.95 but had well below average volume. Looking for another opportunity early this week.

COG – Another nice looking bull flag. Watch a move over $42.10 with heavy volume to start the next leg higher. Measured move would bring us to new 52 week highs.

IBM – Cleared this descending trend line on Friday. Watching for a continuation move on Monday, as long as the market continues to cooperate. Some consolidation would be healthy.