Category Archives: 12631
In addition to the ideas and explanations I gave on Monday night in this post, also keep an eye on the resurgent momentum in the multimedia and graphics software industry. Members of The PPT and 12631 can click here for the full roster of ideas.
Take-Two Interactive Software, Inc. is one of the more attractive long setups in the group, on further strength out of the ascending triangle charted below on the daily timeframe.
NOTE: chessNwine’s Weekly Strategy Session has been published and sent out to members this week. I am confident that you will find this week’s version to be of tremendous value in your weekly preparations for the market. It is never too late to sign up at a very reasonable price, so please click here for more details about subscribing or even making a one-time purchase (the subscription plans offer much better value over time). As a reminder, members of 12631 receive the Weekly Strategy Session at no additional cost, as it is included in their membership.
Led by Aruba Networks (ARUN), many enterprise and computer peripherals had strong price action on Friday. Stocks like EFII and UNXL are particularly interesting on any further strength this week, given their solid chart setups.
Courtesy of The PPT algorithm, here is a list of some of the most impressive upside movers and shakers last Friday. I am cross-checking these names with their respective daily and weekly charts to identify the very best potential long setups, upon further market upside.
My “12631 RELATIVE STRENGTH” saved screen inside The PPT algorithm seeks to identify stocks which have seen a surge in their respective PPT Daily Hybrid Scores (combination of technicals and fundamentals) while suffering a negative Weekly Hybrid Score from the past several days of trading. In essence, this amounts to a positive divergence which, when cross-checked with the 12631 way of filtering stocks through human technical analysis, yields a focused and cogent list of issues emerging from consolidation or turning back higher after a recent pullback. To put the icing on the cake, I filtered the screen to make sure all stocks had a very strong Relative Strength Score (according to The PPT algorithm).
Here are tonight’s top fifteen results, with some quality charts there to have in mind, should the market’s bullish theme continue.
(Click on image to enlarge)
We know that rotation is the lifeline of a bull market, which forces us to consider Tuesday’s strength in energy stocks even as the Nasdaq, small caps, and transports generally lagged. On the weekly chart of the sector ETF, the XLE (first one, below), we can see a multi-year symmetrical triangle breakout to begin 2013. The key, of course, to a major breakout first and foremost is whether it has staying power, or instead reverses lower in a nasty bull trap.
With this in mind, there are a slew of individual energy stocks I am watching for strength throughout the rest of this week. While I would not chase an extended energy stock like ConocoPhillips (COP) up here right now, I would certainly consider a long swing trade in Continental Resources on further strength, among others. On the second chart below, consider the multi-year look of CLR as it threatens to break above major resistance and rally back to all-time highs.
The setup with the overall market right now is such that bears are arguing for a broad correction, while bulls wants to see the rotation thesis persist as the indices grind higher or sideways. I believe watching the bevy of, currently, non-extended energy stocks is an excellent indicator of which side wins out. And the third and fourth charts, below, of the daily timeframes for other energy/driller/services stocks should likewise flourish in a continued bull rotation. They might need more time to base or form bull flags, but generally speaking recent gains should largely be held intact. Furthermore, in order for me to actually take the trades I need to see further actual strength.
Although 2013 is still very young, oil well services and equipment stocks are up over twice as much as the S&P 500 Index, year-to-date. The first chart below is of the sector ETF on the weekly timeframe. Note that $45 still needs to be breached to likely set in motion a sustained breakout. However, underneath the surface I am seeing very strong action with sound buy volume to have me looking for follow-through in the coming weeks, beyond the ubiquitous oil service stocks BHI HAL SLB, etc.
In addition to the weekly charts of four individual ideas below (I believe the weekly timeframes offer the best perspective here, especially in the face of a pullback or pause this week), members of The PPT and 12631 can click here for my “12631 TOP ENERGY PERFORMERS” saved screen.
Last night, I made the following video for 12631 subscribers walking them through the resurgent regional bank sector. I also guided members through using The PPT screener to better isolate trading ideas.