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Look Up at the Sky for Ideas
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In the “cool and scary/awesome things in the sky” sector (aerospace & defense), I have been charting TDG for you many times in this blog, and went long inside 12631 ten days ago. In addition to TDG, in the same sector BEAV and SPR are also looking actionable here, as they break out from tight bases about all moving averages.
Please be mindful of earnings dates and be sure to consider stop-losses in order to mitigate your downside risk for any idea that I post.
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Intraday Look & Afternoon Long Ideas
Simply put, we have a trend day higher today, as you can see below on the 5-minute chart of the SPY. The bulls have controlled the tape from the opening bell this morning. In particular, after four prior days of consolidation, this is impressive action. While many traders seem to be hung up on calling a top and declaring the market overbought, I am more interested in respecting the prevailing trend. True, we could always give up the goose into the closing bell, but the lack of downside follow-through to yesterday’s reversal looks to have scared the bears away for now.
A few long ideas to consider this afternoon: BZ CF SAH SHAW STEC (above $10) TNH TRN
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This Situation is Rewarding Grenades
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Many posts in my tab this year have either directly or implicitly discussed the biotechnology sector. Indeed, the group as a whole has been a monster to the upside in recent months, and that type of outperformance commands your attention. Today, the biotech’s are outpacing just about every other sector and major index in the market.
Inside 12631, we have been constantly discussing biotech stocks, and not because we are inclined to trade them (we are not), but rather because we are respecting the market’s price action and message. Trading biotechnology stocks may sometimes feel akin to holding a pin less hand grenade, given the FDA’s propensity towards surprise announcements that can literally crush or explode a stock price in a matter of moments.
However, as I discuss at great length in this post, you must not let a few outlier events in a stock or sector dissuade you from high probability trades and opportunities. Currently, the biotechnology sector remains in bull mode, and I see quality setups and follow-through. It is very easy to talk a big game about being objective and remaining disciplined in the market, but a major reason why we have cultivated large readership here on iBC and a growing subscriber base in The PPT and 12631 is because we execute, too.
I am not inherently a biotechnology bull, but when the going is good I am going to play along, with stops in place. As the biotech space heats up, there may indeed be reason for caution as it potentially becomes a crowded trade. Here again, respecting technically and the psychology of the market is important, rather than carrying over hang-ups about the sector in general.
Comments »Final Hour Long Ideas
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Seductive Setups for Tuesday
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