Late Night Strategy for Tuesday

Two long ideas I am considering if the broad market bounce has legs are Cadence Design Systems and Nordstrom.

On their respective daily charts, below, note the orderly basing action within the context of overall uptrends. On further strength, they are ripe to break higher from these consolidations. But, again, I suspect they will need a healthier broad market in order to hold the moves.

Alternatively, If we roll back over I favor shorting the biotechnology stocks via a long BIS trade, and perhaps going long volatility via UVXY.

Drop me your top tickers overnight.

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After earnings, WWE is still a candidate for a gap-fill higher, seen below on the daily chart.

You are talking about a heavily-shorted stock which has been annihilated since the spring. As long as it holds over $13 the trade has a good chance.

Stick around for my video market recap after the bell.

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The broad market bounce is picking up a bit of steam this afternoon, as leaders such as PCLN TSLA are distinguishing themselves even from their marquee peers.

To be sure, a strong close and follow-through tomorrow would be ideal for bulls, cementing a short-term trap of “hole-snorters.”

As I noted earlier, I am out of my TZA long and back to cash, stalking new setups.

I suspect in this final hour I will have a better idea how we are looking into tomorrow. Still, buyers have to show a bit more conviction for me to believe we are off the races again.

Closes over $1,293 on Priceline and $245 on Tesla would be excellent steps for bulls.

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I took off the final piece of my TZA Long just now inside 12631 for a win, and am back to full cash.

The small caps are trying to break higher from the 30-minute triangle, below.

A few longs on my radar if the market stays firm: FB STLD TSLA.

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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.

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