As the market becomes more selective in the mature stages of the bull, being precise with stock selection becomes paramount. Within the transportation sector, there are plenty of charts too extended or sloppy to stalk for swing entries without a sufficient period of tightening up first. As a subset of the transports, the shipping industry sports a similar dynamic.

With this in mind, here are several of the better-looking charts related to the shipping industry that I would keep on watch. See my notes on the daily charts, below.

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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.

Member of The PPT and 12631 can click here for my “12631 Top Energy Performers” saved screen for other ideas in the space, sorted by Daily Hybrid percentage change.

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Short squeeze ideas, courtesy of The PPT, to keep in mind if the market strength continues. Click on image to enlarge.

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Count me in the large group of traders wanting to see many charts tighten up and offer better entry points for my long swing traders.

However, as I alluded to in my video market recap earlier, the market does not much care what I desire. The nature of a bullish tape is that eager bears and overly cautious bulls are left behind in a major way. Furthermore, every time it seems reasonable and perfectly logical to have a pullback, the market simply pushes on higher. Eventually, that changes and we do see that price pullback so many are yearning for, probably when they have finally given up hope it will ever come. However, whether that happens tomorrow, next week, or next month, remains to be seen.

I recognize that you could always make that argument. But uptrending markets are uniquely and notoriously difficult to top-call–I would argue far more difficult than bottom-calling a correction, for example.

At any rate, we know the insurers were extremely impressive on Tuesday. Should the broad market continue to defy a widespread correction in favor of continued rotation, I am looking at the following under-the-radar insurers, beyond the widely-watched ones by traders. Some of these are thinly traded, so be careful placing market orders.

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Here are some under-the-radar trading setups, on watch for strength early this week.

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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.

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