I got shaken out of it myself late-last week, but quite a few 12631 Trading Service members are still holding on to the TKMR biotech long, not only an Ebola play still a solid technical setup.
Given this extreme relative and absolute strength, it makes sense to keep an eye on this one going forward for a reentry.
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Micro-cap and small cap weakness (and U.S. Dollar strength) is likely beginning to pressure the rest of the market after an extensive period of time of divergences duking it out versus stubborn and spirited bulls.
I see plenty of attractive short setups out there, ranging from AA F GM PCLN to LVS SBUX WYNN, among others.
We have, of course, seen countless “bear traps” over the past few quarters, with each apparent breakdown simply setting up a V-shaped rally back to the highs in a vicious squeeze, then endless grind higher. So, seeing this weakness hold and then spread is going to be critical to the bear case this week and beyond.
Circling back to the micro-caps, note the daily chart we have been tracking, below, indicting the major topping pattern is very much in play and asserting itself today.
As evidence, consider that the micro-cap index is trading back at levels where it was in October 2013–Nearly a full year with no progress made now.
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Dip-buyers are giving it a try as we speak, off of another weak open. They, of course, have had tremendous success for a while now. So, if they pull off another spring higher I would have Mobileye, first chart below, as a long idea for momentum.
On the short side, I am stalking Priceline again for a rollover after its recent bounce. We played the initial breakdown inside 12631 a few weeks back.
What are you trading this morning?
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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.
Long (on strength): LBTYA, MET, PANW, TWTR
Short (on weakness): CAT, EWG, EWI, GM, QCOM
Please click here to continue reading
Comments »
For you night owls out there, feel free to drop me any market/trading-related topics you would like me to cover in a weekend video.
In addition, anything else about the current market, feel free to drop below.
Speak your mind, night owls.
https://www.youtube.com/watch?v=Ur8rBhREsAU
Comments »
AAL was a short idea I referenced in recent weeks. Headed into Monday, keep an eye on Delta, another major airline, to break lower from the consolidation highlighted on the daily chart, below.
Airlines have, on the while, enjoyed spectacular rallies over the past several quarters. However, they are ripe to correct, and thus ripe for short trades in the coming weeks.
Drop me your top tickers overnight.
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