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Say what you want about the folksy image acting as a thinly disguised veil for him being the biggest shark and hustler who ever lived (sorry, but you do not make $60 billion by being a big sweetie), but Old Man Buffett is poised to sit pretty, once again. While the rest of us make short-term trading bets on companies with price/earnings multiples in the triple digits whose sole claim to fame is that they can make sweatpants that can make any woman’s ass look tasty, Ol’ Warren sits in Omaha and downs egregious amounts of french fries and milkshakes, ignoring fluctuations. Now, more than ever, two of his longer-term bets (i.e., his holding period is “indefinite”), PG and KO, have as bullish a setup on their monthlies as virtually any chart out there.

As usual, these types of stocks have taken their sweet old time setting up, and are only now starting to break out. Consider them for your IRA or long-term portfolios in general, with the dividends to boot.

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One of the more rigorous aspects about trading full-time is putting in your nightly homework not so that you automatically make money each and every single time the next day, but so that you can best get a feel for the nature of the current market. Over the past two days, the major averages have consolidated the steep move higher we experienced since the middle of March. Many levered, high beta areas of the market have sold off violently, and sentiment has largely turned more cautious.

While scanning through charts this evening, the drug stores popped up as one of the best set up areas of the market. While the knee-jerk reaction may be to think, “These charts are set up, so I will simply buy them first thing tomorrow morning and dominate this market,” the better strategy in this current situation is to use them as gauges for how well “breakout plays” are working. Obviously, those types of plays have not worked in the past couple of trading sessions. What we are looking to see is whether that condition persists. If it does, then it is all the more reason to respect the nature of a market in consolidation. Moreover, it is also a reason to consider focusing more on potential support buys in lieu of breakout plays. Hence, focusing how how you use the charts that I present is usually far more instructive than simply looking at them and deciding whether to take the trade or not.

If you are, in fact, looking to be a drugstore cowboy ahead of WAG‘s April sales release tomorrow and CVS‘s earnings on Thursday, then the following charts look ripe. See my analysis and price triggers below.

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While there are plenty of charts that continue to need more time to set up properly again, there are still some that are worthy of placement on your watchlist. Even during consolidation phases within a bull run, there remain quite a few issues that work well. Below, you will find five stock ideas with my analysis that I will be monitoring closely tomorrow.

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As I wrote last week, try to avoid being a “Tavern on the Green Trader.” The buzz this evening is over the huge drop in silver. However, if you are a stock trader, then your time is best served focusing on the price action in equities. Here are some more stock ideas for this week, in addition to those that I gave you earlier this weekend here and here.

See my notes on the annotated charts below for analysis and price triggers.

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At the risk of stealing the formidable Woodshedder’s thunder (that may or may not be him getting a haircut above), I have seen quite a few high and tight bull flags pop up on the charts lately. Recently, I have been doing a video chart request series for 12631 subscribers, where members ask me to look at a few charts and I talk them through my analysis. Thanks to our talented community, such as @deberts and @thewife (there are plenty more excellent traders), below you will find two classic high and tight bull flags to consider.

Regarding what a high and tight flag is, after a sharp move higher, you are looking to see how a stock comes to terms with that move. If there are wild price swings and/or if there is a high volume selling affair, then the chart usually becomes too sloppy to swing trade. If, however, the stock quietly digests the big move on declining volume and tight price action, then the possibility of a secondary breakout higher increases substantially. The latter scenario gives us the high and tight bull flag look. Hence, you will always want to be on the lookout for these types of patterns, especially when the broad market is constructive and breakouts are more likely to be successful.

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