Market Watch: Three to four days of consolidation on the 60 min charts creates situation where markets could break either way for the day trader, or create more chop. But daily trends in most stocks are still very strong to the upside making it hard to find good shorts.
Long Focus
The two highlighted stocks are daily flags, but there a handful of daily consolidation breakout candidates in the secondary list.
CCJ: Inside day after a 3-day pivot transition pattern. The big number to clear is the high of 2/9, 42.70, but would consider breakouts below that. The other key level is yesterday’s high, 42.59. Today’s FTP is 42.15 and equal yesterday’s FTP and 42.06 is a key intra-day low, so I would only buy strength over the FTP, 42.15.
- Trade OR breakouts over FTP, 42.15 and ideally over 42.70.
- Be very careful with OR Reversals that are below 42.06, and ignore any below S1, 41.71
SU: Yesterday closed over the 3 day pivot high and R1 for the first time since its daily swing highs. The close over the 3-pivot high makes it a 3-pivot transition set up but it needs an OR breakout over yesterday’s prior high to confirm. The 2-day pivot pattern has a bullish stack, and I like the strong volume closing half hour also. Resistance area to watch is 41.80 based on daily lows near swing highs.
- Trade OR Breakouts over S1, 40.63
- Trade OR Reversals over S1, 40.63 cautiously. I prefer strength.
Other interesting long charts: KSU,TRN,UNP,NOC, MMM, FLSR, SLB,BIDU, PNC,BMC,CAT,SWC,POT,TBT
Short Focus
I don’t see much with great set ups. I’m going to focus on FCX again, and UHS but I’m not going to highlight any. I’ll watch for intraday developments.
Other potential short charts: INFY, GS, SLAB, CTRP, CNX
