SPX is over extended and ripping through resistance levels. It needs to digest, whether that’s through time or price. I wouldn’t be too surprised to see a quick run to 1474.51 before pulling back but time will tell. I am mostly cash here because I sold just about everything into last weeks rip stick, not including some longer term holds. I have the trigger finger itch to start buying up some names again but it’s poor risk/reward to start buying new long positions at these levels. Overall, I am a bit bearish, the market needs to digest last weeks run. The SPX has violated the upper bollinger bands and as a personal rule I don’t start new full sized long swing positions until the price comes back in.
IWM (weekly chart) – closed at resistance and could use a rest here as well.
I’m going to start with the short list because I’m expect a pull back this week:
AAPL (weekly chart) – Inside a descending triangle and testing volume support. To me, volume looks to be suggesting lower prices.
DLTR – Inside a long term descending triangle. Recent lower highs and overbought levels. First target is recent lows. Second target is $36.00.
POT – Friday’s close is testing this descending trend line. My bearish bias on the SPX leads me to believe this test will be fail. However, if it clears this level with heavy volume it could be a profitable long position.
CMG – Similar pattern and risk/reward as POT mentioned above. CMG has a much heavier short float.
LONGS:
SAVE – It has been a long time since this name has been relevant to me but the chart is screaming at me now. Closed above volume resistance and the 200ema and we have a gap to close in the low 19s. It has ‘that look.’
S (weekly) – Basing nicely here on lighter volume. Closed above volume resistance on Friday. Keep this one on your watch list.
AMZN – Would like to see this one come retest the 8ema before starting long. I am thinking there will be a quick test of recent highs before coming back in one last time before pushing to new all time highs. There is also an argument for a possible cup and handle here on the daily (not a pretty one).
HBI – Buy trigger is clearing Friday’s highs. I like the increased volume activity during the last three sessions.
CNX – Bounced off this rising trend line last week and closed over volume resistance with increasing daily volume. Would like to see it ride the 8ema to the top side of the pennant.
XOM – Would like to see above average volume in this name to push it over this descending trend line.
EXPR – Noticed this tight consolidation pattern on lighter volume. Friday’s close held above volume resistance and it looks ‘poised’ to push higher.
The hand that feeds keeps slappin’ at the mouth,
