The tension continues to build in the major indices between the recent pattern of higher highs and higher lows, versus the resistance from late June. This tension could easily be resolved as early as this week. While the $HPQ news may weigh down the broad market tomorrow, I believe that the major stocks which are in unique technical predicaments, such as $IBM, will eventually be of more import.
Below, you will find my best trading ideas for the upcoming week. They are all long setups. However, if you must short something, for a quick scalp you could probably do well shorting the ags, as well as the precious metals, due to their recent moves higher in a straight line. However, keep in mind if you choose to short equities that you are fighting the five week trend of higher highs and higher lows.
Feel free to pick and choose whichever setups best fit your style. Please keep in mind that these are trading ideas only. I also urge you to use stop losses in order to mitigate your downside risk–I prefer a trailing 7-8% stop loss.
I hope you find these ideas helpful.
_________
_________
__________
_________
_________
_________
_________
________
_________
_________
_________
I love the “Setups for the Week” post on Sunday’s Chess.. Saturday’s are the worst for me because there are no markets open and no futures.. Sunday, things start getting interesting again, and this post always gives me something great to read while I sit here listening to some old Supertramp tunes 😉 Thank you
I’m a big fan of that BZ chart. I’m already in on GNK with you and that’s good to the tune of +2% for me so far.
Did you not make the trip to NYC to party with the other boys?
As always, I really appreciate the great substance and style of your blog.
Best Wishes
Dave
From my observations, the daily 35 EMA has marked the lows on CRUS since late February. This means that the stock could pull back a bit further and close the gap from July 21 down at $18.15. I’m not saying that it’s going to happen; just saying that it could do it and still offer a bullish set up.
Some great setups for the week – I really like your work.
Nice work as always Chess. really dig the work and the clarity of thinking. Any thoughts on WFT — trying for a third time to break descending trendline, but a lot of congestion on the left. hmmm.
like WFT above $17
I absolutely LOVE your setups posts on Sunday nights man… educational and actionable.
Thanks again man.
What do you think of IMAX? Do you see a cup and handle type of looking pattern on the daily? If not, what do you see?
Based on the size of the handle, it looks like IMAX is set up for a (roughly 10%) move to $17.
A pullback from $17ish (which I expect) might be the handle for a cup and handle on the weekly. Based on the size of this pattern (if it develops), I believe that it implies a retest of the 2010 high near $21.
Anyway, been tactically in and out of IMAX successfully since the day after (what I considered to be) capitulation (7/6/10). Got long again on Friday (@$15), when it hit the lower trend line of the 60 minute and daily charts’ “up” channels. I think it’s worth a look here.
I would appreciate your opinion, if you get a chance.
By the way, my stop in IMAX is below Friday’s LOD. I get the feeling that I won’t be getting stopped out, but we’ll see.
Thanks again for everything Chess. Love your blog like I love cooked food.
I would use the 50 day ma as my guide here. If it holds, then I think we see $16.50 easy, which is where the 100 day ma is. Below it, I dont like the chart.
Thanks for your insight. Much appreciated.
Chess – Where would you look for an entry on BZ? On a pullback to the breakout (if we get one)?
We may not get it, but an orderly pullback to $6.20.
Can you give us some incite on what parameters you are using for your scan?
Healthy price action working in concert with volume and moving averages. I do not have too specific parameters, as I like to be flexible in my thinking.
I’m watching GNK with interest. Thanks for the chart. The short interest is huge!
Me too philsy!
Bought more UWM.
nice chart