DJIA – Weekly chart. Broke out over previous highs of 14,198.10 and I am looking for higher prices before we correct. In my opinion, the SPX will see all time highs before the correction — However, it wouldn’t be unusual to see this market digest through time first. Still too man pundits in the media calling the top. The market is punishing them.
Money has been flowing out of the bonds for the better part of 2013. The TLT (weekly) is looking for an obvious test of the 200ema, if this current price fails. TLT got beat up pretty bad last week, a dead cat bounce is welcome and I’ll initiate a new short position. I am interested in selling TBT puts.
LONGS:
EBAY – Above average volume day on Friday. Nice hammer developed off this rising trend line. I started a 1/4 size position in APR $55 calls. Looking to add. Failure of the trend line is my stop.
AZO – Back on the list this week. I’ve been stalking this channel for months, if this turns out to be the bull flag to break us higher I am going long via APR calls. It will need room to work, that needs to be factored in your risk management plan.
AMZN – Nice looking bull flag on lighter volume this past week.
MA – Consolidating just over volume support of $525. Watching a test of the 8ema on the daily or a push over this descending trend line with volume to start a new long position for the next leg higher.
HAL – Looks ready for higher prices. Got back to oversold levels quickly on that last pull back. Following this ascending trend line out of this long term base.
BAX – Cleared this ascending triangle pattern and is consolidating above volume resistance. Setting up for a move higher.
NFLX – 60m chart – Consolidating under this descending trend line. Watching volume for a push higher. Daily chart has been working off overbought levels nicely while maintaining price.
Some cheaper names that look ready:
HLIT – Watch for volume and a break over 5.85 to clear this long term base.
RNDY – Consolidating under volume resistance. Textbook volume signature on the bull flag. This is what you want to see.
SHORTS:
FB – Humans are pattern seeking creatures, without even trying we try to connect the dots to everything we see and hear. This can work heavily in our favor but against us too. This chart is a head and shoulders pattern and a cup and handle at the same time. I started a short position on Friday at $27.85 without noticing the cup and handle in the same chart. I am giving it a $1 stop and may bail earlier if I feel like I am wrong.
TLT – Bonds got beat up last week so I am looking for a dead cat bounce to get into a short position via selling puts in the TBT to take advantage of this descending triangle.
FFIV – Bear flag on the daily. Sideways consolidation, Friday’s action couldn’t maintain the 8ema on the daily and selling volume is beginning to increase. Looking for a test of at least the lower volume support level on the chart.
NKE – Watching the selling volume near the volume support level and ascending trend line. Could be a low risk/reward short opportunity. Open gap below at $49.53.
We’ve had our fights, been black and blue, it’s true,
@AffluenzaVirus
