Before I get into my current market read, I must say that I’ve really enjoyed the Boom Factory this week – great traders having a good time. Makes me excited about Bulls 3.0 that will be launched next month. Good times.
Ok, so what’s up with the equities market? Nothing good. That’s for sure. Feels like we’re consistently releasing disappointing economic numbers (housing, etc) and not much has changed in the news – Europe is a mess; Gulf is a mess; Financial Regulation is in limbo; consumers are nervous. The story is the same, but the day is different. So, at the risk of sounding like a broken record, I’m not swinging overnight and am continuing to search for intraday pops.
Quick read of the SPX– neutral to bearish in the near term. It’s currently trapped between SMA20 and SMA200 with unattractive MACD and RSI14 dropping below 50. There is, however, some horizontal support here, but it is weak.
Tomorrow morning, there are two things I’ll be watching – if SPX holds SMA20 and the economic reports scheduled to be released before the open –
Durable Goods Orders – M/M change consensus -.5% range -2.5% to 1.5%
Jobless Claims – New claims consensus 465k range 445k – 470k
These two data points will likely shape the morning and will offer a gap up or down in all livelihood.
A few stocks on my watchlist tomorrow for short term scalps – remember to consider resistance levels, volume, support, and stops when participating in any stocks you are not too familiar with fundamentally. Most of my scans came up pretty dry and a lot of charts are just ugly, bearish, or congested – no need to force a trade, right?
– Tight bollinger bands and better than average volume. I’m looking for a move north of 1.08 with volume before getting involved.
ICOG – Lots of relative volume coming in with a positive MACD cross. Possible scalp above 1.62. This stock has massive intraday moves, so if you scalp, be careful and protect yourself against a pullback and sell on profits – wouldn’t try to hold this very long.
NVAX – not the greatest setup, but is forming on falling wedge on tightening bollinger bands – always worth a watch. Needs to get through SMA20 before I’m interested. Will watch for that move with volume.
AONE – continues to look good. Not sure where the entry is here.. I’ll watch it in the Boom Factory tomorrow, but I like the volume, price strength and move through 50 on RSI14 today.
KERX – Currently trading in a downward channel, but there are a few things to watch here. SMA100 is holding and volume is decreasing. The sellers maybe about done. Would like to see move out of channel before trading long.
FRPT – working on a triangle. The long entry is above the top trendline resistance with volume. First target is 4.75, but hoping for a clear move above.