SPX – Weekly chart. This is the rising channel from the 2009 lows. There is still room for upside. The top trend line is ~1690-1700.
Even after Friday’s impressive run the McClellan Oscillator was unable to achieve overbought levels (>50).
The dollar’s strength has been incredible & I don’t see any reason why it won’t test the long term descending trend line starting from 2004. Meanwhile, the market is completely ignoring this action.
30 Year Bonds – Weekly – Building a head & shoulders pattern with some volume pockets significantly lower.
The daily chart shows a fib retrace at roughly 146’18 right near the confluence of moving averages & impeding bear cross.
LONGS:
AMZN – Watching the descending trend line — a push over it with above average volume could trigger a higher high and eventually a test of recent highs.
AMT – Three weeks worth of consolidation after a 15% run higher. Buy trigger for the next leg higher is $85.25 with preferably 2.5m+ shares.
AAPL – Volume signature is a bit concerning but I can’t help but notice the inverted head & shoulders pattern. I am long via a very small position of bull call spreads. I will close them for a small loss if we lose $419.00.
BIDU – Looks like the last few months have been a basing pattern with a few hints of accumulation. Price & volume will need to confirm the move but I believe last weeks action will confirm to be a bull flag. Watching.
CMI – Watching for a break over the descending trend line and volume resistance to start the next leg higher. Volume signature looks good.
The Energy Sector:
The XLE has been hot & the rotation into these names has already started. I am expecting to see more upside in a lot of these names this week. I wouldn’t recommend loading up with the entire lot but these are the best looking charts in sector — focus on one or two of your favorites.
APA – Cleared this long term trend line on heavy volume and recaptured the 200ema. Wouldn’t be surprised to see a little more digestion but it looks ready for long term higher prices.
COG – My favorite play for this week. Friday cleared and closed over volume resistance on above average volume. Recent highs is the first target then I would expect a breakout of the ascending triangle.
MPC – Cleared the descending trend line on Friday and closed right at volume resistance. Look for higher prices if the volume continues.
XOM – Looks ready to come out of the long term base. $93.60 is the first target but I think $100 is a realistic target before the end of June.
APC – Friday started a break out of a mini cup & handle pattern inside of the longer term ascending channel. First target is the upper trend line.
SHORTS:
EXPE – Possible bear flag developed off the EPS drop. A close below the 200ema would trigger the short entry with a first target of the recent lows.
PRE – Lost the rising trend line and major volume support on heavy volume. Stop on a short entry would be a close above the volume support level (about $91.25).
Trade safe this week,
@AffluenzaVirus
