Championship Sunday Stocks

We should have two terrific, if not classic, NFL games today, with Tom Brady versus Peyton Manning and the heated rivalry between the 49ers and Seahawks.

Buffalo Wild Wings is, of course, the quintessential NFL-related stock, serving wings, burgers, and beers amid a bevy of flatscreen TV’s.

The stock has seen a tremendous run in recent years, going much higher than I expected. I have not shorted it yet, even though I previously charted it as a potential short setup (which obviously never triggered).

Currently, though, with the weakness in consumer stocks, an aggressive trader might consider playing BWLD for a quick gap-fill lower next week, seen on the daily chart below.

Earnings are scheduled for February 4th.

______________________________________________________________

Raising Cain (1992), Brian DePalma’s 1992 thriller starring John Lithgow (pictured above) and Lolita Davidovich, is worth seeing due to the great Lithgow’s lead performance.

Updating this blog post from December 11th, 2013, you can see the “island top” daily chart bearish pattern on the FXI, ETF for China, has not only confirmed lower but continues to be the controlling pattern. Along with weakness in other emerging markets, China is now working through a descending triangle pattern, which often resolves lower when seen in the context of a corrective pattern.

China names like Baidu have been resilient, but under $169 and I would expect the selling to intensify quickly.

______________________________________________________________

A good Saturday morning viewing here. Note how market forces adjusted to Prohibition.

PROHIBITION is a three-part, five-and-a-half-hour documentary film series directed by Ken Burns and Lynn Novick that tells the story of the rise, rule, and fall of the Eighteenth Amendment to the U.S. Constitution and the entire era it encompassed.

http://www.youtube.com/watch?v=wef4YkP5EGE

The following is an excerpt from last weekend’s Weekly Strategy Session (please click on that hyperlink for details about trying it out). which I published for members and 12631 subscribers this past Sunday. Be sure to catch my next Weekly Strategy Session. Please click here for details about joining.

Please also note that members of our 12631 Trading Service receive the Strategy Session each weekend at no additional cost.

See you there.

Have a great weekend!

After offering select long and short trades for opportunistic, disciplined traders in the summer and fall 2013, the precious metals and miners have been decidedly not tradable of late, with fits and starts in either direction. 

From a broad perspective, though, the last push lower in price saw the early-June 2013 lows breached. However, that price low came with bullish RSI divergences still intact, meaning that downside momentum clearly was not as favorable to bears as it once had been in a strong bear market. 

For reference, the RSI is simply the “Relative Strength Index” used to identify changes in technical momentum. Above 50 is generally considered a bullish RSI, with above 70 viewed as overbought. Trending below 50 is considered a bearish RSI pattern, with below 30 considered oversold. I have indicated this RSI divergence on the weekly chart for the miners. 

And turning to the daily timeframe for the gold miner ETF, should bulls be able to crack $22.20 to the upside in the coming week, it would put into play a multi-week bottoming pattern (light blue lines), targeting about $24.20.

Please click here to continue reading

This long-term investment play in WWE, which I first mentioned way back in August 2012 as a stealth yield play, is showing signs of a blow-off top today.

On the updated daily chart, below, note the high buy volume surge of late combined with the reversal intraday today.

You never know until you see sound confirmation lower whether the reversal is the real-deal, or simply a fake blip before the next thrust higher.

What we do know is that the stock has covered a ton of ground since August 2012. I have been slowly selling into strength since last year, down to a bare-bones core long-term position. Of course, I wish had held a larger position into the most recent surge. But I am content to trade around strength, given how rare this type of move is.

Given today’s action, if I were holding a larger position I would certainly be reducing. As a short-term trade, you might consider shorting it with a cover-stop above today’s highs.

Earnings are not scheduled until late-February.

__________________________________________________________