What’re You Doing with That Hammer?

slingblade_1292818412

The market came into many a bedroom this week holding a hammer. Question is, what is the market doing with that hammer, and who would be on the receiving end of it potentially in the coming weeks?

We still have quite a bit of technical damage in many prominent charts, including small and micro-caps, not to mention leaders like AMZN GOOG NFLX P PCLN YELP.

Nonetheless, biotechnology stocks and the likes of AAPL FB are proving tough to beat for eager bears without stop-loss discipline.

Be sure to catch my work over the weekend for more analysis, as we take these market issues in-depth in an objective manner, along with actionable trading ideas.

Have a great weekend!

Don’t Let Them High Pressure You

ScreenShot1689

Following-up on the theme of volatility peaking at turning points in the market, the auto parts and secondary market for car plays, such as AZO ORLY and KMX, below, have all seen brilliant multi-year runs.

But Carmax is a good example of those loose and sloppy chart patterns we are seeing the market at-large, even with resilience by bulls. Typically, this does not end well after long bull runs. The action in Carmax, again after a multiyear bull run, indicates violent indecision and sellers slowly gaining control, more than anything else.

In addition, the bifurcation in this sector is acute, with F GM both weak and getting weaker.

A healthy, sustained leg higher for the AZO ORLY KMX group is not likely imminent.

__________________________________________________________

KMX

A Prime Spot for an Amazon Drop

o-AMAZON-DRONES-facebook

The most basic of trendlines can be found on the Amazon monthly chart, below. After this recent post-earnings drop, the presumption is that this support trend will likely break and, at a minimum, reset Amazon’s long-term bull run. Of course, there is also the risk the support break morphs into a deeper bear pullback.

Much like the NFLX P YELP drops lower, though, we can see big money striking decidedly more cautious tone even with the rally in the major averages over the past week or so.

I would resist bottom-fishing Amazon for anything more than a quick one/two day flip with the downside risks still pronounced and the earnings quagmire not likely to have run its course yet.

__________________________________________________________________

AMZN

Five Stocks Playing Strong Hands Today

B0rQm5aIQAAMAB2

Courtesy of The PPT algorithm, here are the most current top five readings from my “12631 RELATIVE STRENGTH” custom-made screen, identifying which stocks are exuding some of the best performances to the market at-large at any given moment.

I look for stocks whose Daily PPT Hybrid Score surges, while the Weekly Hybrid has been negative over the past week. This can often yield stocks which are emerging from consolidations.

Members can click here to view and save the screen.

Sorted for at least 500,000 shares of daily average volume to ensure liquidity.

Please click on image to enlarge.

________________________________________________________________

2014-10-24_1221

Biotechs Still a Haunted House for Bears

Jqc8476

To follow-up on my post from yesterday, in order for me to short biotechs again, or perhaps short anything else, this biotech sector ETF chart is going to need to stage a meaningful reversal.

Simply put, since last Wednesday’s lows we have seen a sharp move to new highs which has settled into a strong if not steep uptrend channel (light blue lines).

A name like ACHN over $11.50 looks most actionable on the long side for bitoechs, though I suspect the mega cap ones would be most critical to the sector’s health.

In cash I sit…

_____________________________________________

IBB

Back-Rank Checkmate Potential

3234-handpainted-modern-oil-painting-on-canvas-wall-art-picture-for-home-decor-font-b-unique

If crude oil loses the highlighted daily chart bear flag, below, I am considering DTO SCO inverse ETF’s to short black gold.

As you know, crude has been quite weak for some time and has failed to hold much of a bounce at all.

Against that backdrop, a washout is still a clear risk, especially with the USO ETF loses $30.

What are you trading this morning?

____________________________________________________

USO

What’re You Doing with That Hammer?

slingblade_1292818412

The market came into many a bedroom this week holding a hammer. Question is, what is the market doing with that hammer, and who would be on the receiving end of it potentially in the coming weeks?

We still have quite a bit of technical damage in many prominent charts, including small and micro-caps, not to mention leaders like AMZN GOOG NFLX P PCLN YELP.

Nonetheless, biotechnology stocks and the likes of AAPL FB are proving tough to beat for eager bears without stop-loss discipline.

Be sure to catch my work over the weekend for more analysis, as we take these market issues in-depth in an objective manner, along with actionable trading ideas.

Have a great weekend!

Don’t Let Them High Pressure You

ScreenShot1689

Following-up on the theme of volatility peaking at turning points in the market, the auto parts and secondary market for car plays, such as AZO ORLY and KMX, below, have all seen brilliant multi-year runs.

But Carmax is a good example of those loose and sloppy chart patterns we are seeing the market at-large, even with resilience by bulls. Typically, this does not end well after long bull runs. The action in Carmax, again after a multiyear bull run, indicates violent indecision and sellers slowly gaining control, more than anything else.

In addition, the bifurcation in this sector is acute, with F GM both weak and getting weaker.

A healthy, sustained leg higher for the AZO ORLY KMX group is not likely imminent.

__________________________________________________________

KMX

A Prime Spot for an Amazon Drop

o-AMAZON-DRONES-facebook

The most basic of trendlines can be found on the Amazon monthly chart, below. After this recent post-earnings drop, the presumption is that this support trend will likely break and, at a minimum, reset Amazon’s long-term bull run. Of course, there is also the risk the support break morphs into a deeper bear pullback.

Much like the NFLX P YELP drops lower, though, we can see big money striking decidedly more cautious tone even with the rally in the major averages over the past week or so.

I would resist bottom-fishing Amazon for anything more than a quick one/two day flip with the downside risks still pronounced and the earnings quagmire not likely to have run its course yet.

__________________________________________________________________

AMZN

Five Stocks Playing Strong Hands Today

B0rQm5aIQAAMAB2

Courtesy of The PPT algorithm, here are the most current top five readings from my “12631 RELATIVE STRENGTH” custom-made screen, identifying which stocks are exuding some of the best performances to the market at-large at any given moment.

I look for stocks whose Daily PPT Hybrid Score surges, while the Weekly Hybrid has been negative over the past week. This can often yield stocks which are emerging from consolidations.

Members can click here to view and save the screen.

Sorted for at least 500,000 shares of daily average volume to ensure liquidity.

Please click on image to enlarge.

________________________________________________________________

2014-10-24_1221

Biotechs Still a Haunted House for Bears

Jqc8476

To follow-up on my post from yesterday, in order for me to short biotechs again, or perhaps short anything else, this biotech sector ETF chart is going to need to stage a meaningful reversal.

Simply put, since last Wednesday’s lows we have seen a sharp move to new highs which has settled into a strong if not steep uptrend channel (light blue lines).

A name like ACHN over $11.50 looks most actionable on the long side for bitoechs, though I suspect the mega cap ones would be most critical to the sector’s health.

In cash I sit…

_____________________________________________

IBB

Back-Rank Checkmate Potential

3234-handpainted-modern-oil-painting-on-canvas-wall-art-picture-for-home-decor-font-b-unique

If crude oil loses the highlighted daily chart bear flag, below, I am considering DTO SCO inverse ETF’s to short black gold.

As you know, crude has been quite weak for some time and has failed to hold much of a bounce at all.

Against that backdrop, a washout is still a clear risk, especially with the USO ETF loses $30.

What are you trading this morning?

____________________________________________________

USO