The following is just a small excerpt from my latest Weekly Strategy Session (please click on that hyperlink for details about trying it out). which I published for members and 12631 subscribers this past Sunday.
While the strength in the regional and large banks last week excited bulls for a rotation higher, in addition to the decent bounce staged by the small caps, the view here is that the next big directional move in the major averages is likely gong to be tied to the marquee, leading issues setting up. At a minimum, in order for the extended major averages to hover near current levels, leaders probably need to break higher.
Specifically, the likes of FB GOOG PCLN TSLA UA have been fairly quiet over the past week or two, consolidating their prior advances (NFLX has continued on higher). On their respective daily charts, note the tight price consolidations within the context of uptrends.
Should bulls sustain moves higher in these issues in the coming week or two, it is likely that they will buy themselves a bit more time to run higher even in a market with already very extended parts and longer-trme extended indices, such as the S&P.
In addition, these issues also represent actionable long ideas, on a standalone basis, for swing traders on further strength.
Simply put, key off the leaders into September.
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Thoughts on buying UA here? Seems favorable risk reward with 20 day as support and stop loss below. Only concern is overbought position on daily and weekly stochastic.
Prefer it over $71
i can see that too with stop below resistance.