Watchlist 12.26.12 | Bitter Taste


It’s going to be a low volume week and I am not anticipating any exciting action. As much as I would like to believe that a fiscal cliff deal will be made before the end of the year — I am not too optimistic. This mini flash crash has left a bitter taste in my mouth and my overall bullishness on the market has abated. I still can’t bring myself to get net short on this tape — too much negativity. On a positive note the dollar looks to be a bit bearish here and could test lower levels, assuming Washington doesn’t screw this up. As always, be nimble.

Dollar weekly chart. I see a head and shoulder pattern.

I have a short list of stocks I’m watching:

BLK – Testing long term resistance at $209.80. It had a strong run up to this level during the last two months so I wouldn’t be surprised to see a pull back here and build a possible cup and handle. The second chart is the weekly chart. Watch for accumulation if the resistance level is cleared.

LEA – Lear Corp tested a long term descending trend line last week. I would like to see a consolidation pattern below short term highs before exploding higher on heavy volume and offer a bullish technical trend change.

TWC – This one has been trading above gap resistance and been riding up the daily 8ema. My on going target is still gap fill at $98.17.

AVB – Cleared this long term descending trend line on above average volume. It is now in a consolidation pattern below volume resistance of $137-137.50. It could use a few days to allow the short term moving averages to catch up to price action. It also broke out of the cloud on the ichimoku chart.

Trade safe this week. Happy Holidays.

I have escaped the bitter taste,

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