As I discussed in my previous post, the broad market is still in a wide and choppy range. Buying breakouts in these types of markets has been an unprofitable strategy thus far, and I expect that to continue. A better strategy for the long side is to look for strong stocks holding up exceptionally well, that have come back to support.
My best trading idea for this week is to go long $SNDK. I currently hold no position in the name, but the daily chart shows a very bullish volume pattern working in concert with strong price action over the course of the past several months. I like how the stock printed a hammer on Friday, after a week of pulling back in an orderly way. I would place a stop loss below the 50 day moving average, around $43.20.
___________
___________
Another name to keep an eye on is $WYNN. Even if you do not trust the breakout, the chart has stabilized nicely since early May. If you have patience and a bit longer term time frame, you need to be stalking this one to see if it continues to setup and build a healthy base.
Steve Wynn is, bar none, the best casino operator in the world. His properties are best in breed, and this stock will lead the sector on the way up, should we see a breakout in the coming months. Patience is key here, so please do not rush out and chase this name.
_____________
______________
Some of the China names have been performing well lately. $CTRP, $BIDU and $HMIN are all fine examples. The higher beta “Chinese burritos” that got crushed over the past few months appear to be stabilizing here. Again, these are not names you necessarily should be chasing, but you should keep them on your watchlist to see if they continue to base out.
Look for low selling volume, and stronger buying volume, coupled with moving averages that start to flatten out after having been in a steep slope down for several months. $CGA, $RINO and $CAGC are all examples, as well as $HEAT, which The Fly owns.
_____________
__________
Finally, I am in agreement with Jake Gint and the Ragin’ Cajun that the gold miners may indeed be on the verge of a major breakout, and my favorite in the group is $IAG, which I traded for a nice profit earlier this month. Below, you will see the ETF for the miners, followed by $IAG.
__________
morning, chess.
the GDX is looking ripe. i will be watching for an entry! i am long the BIDU & WYNN from the open friday. i didnt get any SNDK off the 10 day ema bounce, because of other positions i am currently managing. INFY off of the open friday, and a pre breakout swing play in CF that i put on middle of last week.
thanks for all your post
sssc
thanks duane-
You made a smart move with APKT. It was listed in IBD a few weeks back when the market was going down a 100 points a day as a stock to look at when the market picks back up. I bought a few shares back then then added on the way down in the low 28’s. Volume was low all the way down and their chart wasnt broken. I’m short oil now as of Friday and not to gong ho on the market in general, but its alwaysbest to have s few longs and make sure you pick the right ones. btw their was accumulation in APKT friday according to IBD;s acc/dist value on instutional investment. Good luck………
thanks Anthony. I don’t own SNDK yet but it looking good too.