I like the large cap biotech Gilead as a short setup if it cracks back below $75. Note the heavy price action on the daily chart, below. There is room to drop a considerable amount if the breakdown from this recent consolidation proves true.
And some long ideas to keep on watch if they see further strength: BDBD FSL M ROVI.
Drop me your top tickers overnight.
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Into the closing bell, another momentum name in the bull is showing its age.
DDD is vulnerable to another leg down, with the major topping pattern still in play. Watch it short under $59.50.
See you after the bell for my video market recap.
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https://www.youtube.com/watch?v=YedqV4Gl_us
Just a quick reminder to always consider your downside risk to any trade you take.
A few Thursday’s ago, I announced on this blog that I went long Walter Energy into the bell, as it closed strongly that day, only to immediately stop out for a loss the next morning into about a 7% gap-down.
For me, a 7% loss is unusual and fairly large, as I try to religiously take a series of small losses.
But consider this: I sold Walter when it was above $10. Today, the stock is trading with a $7-handle.
Always have a stop-loss, mental or otherwise.
Drop me your top final hour tickers.
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Momentum leaders like FB YELP, and the biotechs, are still sluggish as I write this, while the financials are the stars of the shows, as well as select mega caps.
Something has got to give with this tape. And one clue I am watching the zoomed-out 30-minute chart of the SPY, seen below.
Note the sloppy but narrowing pattern for the month of March.
One notable weak link in the financial complex is Visa, another market leader. Also keep an eye on GILD to see if the bear flag actually breaks lower or instead is another bear trap.
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