Parking Spaces

DJIA/S&P are grinding in a holding pattern right below ATH, with the Nasdaq/Russell in consolidation mode further off ATH. $TLT (long since mid 128s) continues to dump back into support, indicating a lack of appetite for safety. The standout, as OA pointed out earlier today is the $IWM, which is in rip-mode, indicating preference for risk. All the indices have covered quite a bit of ground since mid-February, and the action here will indicate whether giddiness forms among bulls during this light volume holiday week for a bust out frothfest, or if a shift into distribution and flight to safety materializes. Market participants are staring down some big earnings as well. Will $TWTR earnings finally meet the narrative so many shareholders (myself included) have bought into? Will $FB earnings (tomorrow after close) maintain the growth story and justify the premium? Other notable earnings this week include $AAPL (today after close), $FSLR (tomorrow after close), $CELG (Thursday before open), $AMZN, $GILD, $AMGN, $BIDU, $LNKD (Thursday after close), among many others. If a good chunk of the fan favorites can beat and trade up after earnings, how might that effect bullish sentiment and market direction? Do bulls continue to laugh in the face of negative news flow (tinder is needed to stoke the flames) and bid up the indices for a blow off or breakout move? Fear and greed index is sporting a not-too extreme 71, and Barron’s Investor Sentiment readings don’t scream euphoria either. What to do?

I ran some scans for boring, slower moving, lower beta stocks to park at least a portion of my swing/position trade account during this period of relative uncertainty, the month of May. Here are some of the intriguing technical setups I’ve found below (some are weekly, others are daily charts). At some point, the negative news flow will matter, whether it was tech overvaluations/earnings disasters in March/April/May 2014, China in August 2015, or the Fed Dot Plot/Global Growth Story Decimation/Extreme Oil Pain earlier this year. The market is rotational, and the stocks below, which have been marking time/consolidating or ignored may be the beneficiaries of that rotational capital. Unsexy plays include: $COST $TEVA $NKE $QCOM $CTSH.

Stay nimble.