30 year treasuries are building a base inside of an ascending triangle on the 60 minute chart. Breakout or failure of this pattern will be critical to the direction the market takes this week. I am expecting further upside to the bond markets so my book is positioned net short going into Monday.
This is another big earnings week, be sure to double and triple check your positions.
Below are long & short setups I am watching for the week:
CAM – Last Thursday many areas of support were tested and held. I am watching for a volume expansion and a follow through to the first target, 50ema on the daily.
ADS – Building a base since mid January and putting in a series of higher lows. Late last week volume has started returning into the stock and it could be ready to print new 52 week highs.
PPG – Testing the top descending trend line of this channel. Volume starting to come back in and I am watching for the breakout.
DE – Testing the ascending trend line, descending trend line & volume support. Similar chart to CAM. Risk/reward heavily in our favor with stops below last weeks lows.
GS – Another low risk/reward setup with stops below last weeks lows. First target is the 8ema on the daily chart. Once your first target is achieved you should scale out of your position and raise your stops to protect your profits & allow your winners to run.
DECK – Consolidating over volume resistance this past week. Wanted to see signs of accumulation to clear the price higher but we won’t likely see it until after EPS. 35% short could be explosive to the price if the company surprises. I will trade the reaction to the report if the price action is favorable.
TRIP – Looks to be building a topping pattern. Watching for a channel failure and breakdown below the 50ema on the daily. TRIP is not reporting this week but EXPE reports on 4.25.13 and there will likely be pin action.
WLL – Weekly – I am watching this longer term pennant formation. Volume and stochastics are suggesting a breakdown. First target is $40ish then 37.00.
BIDU – Couldn’t keep enough buyers in the stock to support higher prices. It printed a lower high and is building a descending triangle. First target is recent lows.
Trade safe this week,