Market Comments: Note the daily pattern on the market watch charts of: The two charts that are the weakest relative to their 50-day MA (Q’s and IWM) in that they touched it, did not make a new low vs the prior day, where the SPY and DIA did. That intra-day divergence in the afternoon combined with a close near the high of the day in the Q’s has me believe there will be some good plays to the long side now.
Long Focus:
I’d still like to have some focus on energy stocks, but it is time to be very careful in this group as it has been pushed up on geopolitical concerns that could ease.
*JNPR: A strong daily pattern that closed well yesterday. R1, 43.99, lines up with significant resistance so watch that level carefully.
- Trade Breakouts over the FTP, 42.60, and preferably over yesterdays high, 43.49.
- Trade OR reversals over key intra-day support of 42.11.
AGP: This stock and others in its group (AET, HUM) have held up well during the sell off. Yesterday was the third inside day so it has tight consolidation. Key resistance levels are yesterday’s high, 57.48, the prior day’s high,57.67, and the close of the big volume day which lines up with today’s R2 area of 57.82.
- Trade breakouts over the FTP, 57.02, and preferably over the last hour high of 57.11.
- Trade OR Reversals over S1 56.55
BID: The daily chart looks like a breakout of a multi-month consolidation that has been held back by the market decline. Yesterday it had a positive inside day and its 2 day pivot pattern has a good stack. I’d prefer to buy strength, but will watch the S1, 46.13, level closely as it lines up with yesterday’s pivot and good intraday support
- Trade OR breakouts over yesterday’s high, 47.01. Watch prior outside day’s high of 47.17, and R1, 47.37 area for resistance.
RVBD: This is strong stock that closed very well yesterday. It may gap open big today. If it does gap big, watch the 42 area as an important level daily level and R1. 42.60-.70 is also important and the high of its move is 43.54.
-Trade OR breakouts over the FTP, 40.21, and preferably over yesterday’s high of 41.37.
-Trade OR Reversals over 39.50 area. S1 is 39.04 but the key support areas are up around 39.50.
Two interesting gaps on news today: BA and CRM. We’ll watch them for OR breakout above key daily swing highs only.
Other long charts of interest: PXD, APA, ROK, HES, CYH, ICE, PLCM, POT, RVBD, ESI, TSL, APA, GMCR, TWC, NOG, XOM, WLL, VFC, RL, BWLD, PNRA, ROST, SWK, ARUN, URBN
Short Focus:
Many of the short ideas have sold off hard into strong 50 day MA trends so today I’ll have to watch intra day action to see which to focus on.
GWW: This stock’s daily looks like it is rolling over. Even if it rallies so this is the one we’ll watch closely
- Trade OR breakdowns below R1, 131.19, but 131.39 is yesterday’s high so that level works too.
- Trade OR Reversals below yesterday’s high of 131.39
Other stocks with potential short charts: GWW, LVS, EQIX, SHW, FTI, IBM, APC, COH, TIF, CCJ, MON ,STT, FCX, CMI, PCAR, MGA ,TRW, UNP, A, BDX, LH, FCX
