Today was a good day to take profits, run new scans, beef up the wallet with cash and minimize swings. I sold most of my positions this morning for some nice gains and then spent the rest of the day watching, but not acting. As a momo trader, sometimes the best thing you can do is stay out.
A quick look at the SPX shows obvious resistance right here and right now…The simple factor that most technical traders are looking at is SMA200. We hit it yesterday and ended up sitting right on top of it today. Where was the carry through volume? Ug. Look at mid-June’s action – consolidation leading to another big sell-off. If we don’t get up to SMA100 soon, we will likely reverse even though a strong pullback doesn’t feel likely in the short term thanks to pretty good earnings. However, the overall data reports have been so-so, at best.
I’ll be treading lightly for the rest of the week and not swinging much – too much market resistance and WAY too much data coming out. And if the latest releases are a good barometer of future reports, then it should be quite a volatile end-of-week.
· Durable Good Orders tomorrow
· Jobless Claims on Thursday
· GDP , Consumer Sentiment and Chicago PMI on Friday
Here are a few highly speculative stocks still on my watch list for Wednesday – mainly looking for volume scalps here – not swings – until the market tells me otherwise.
FBP pulled back to .61. Would like to ride the next wave if volume keeps up.
ABK – there might be some scalping action here tomorrow as it toys with SMA200.
YMI above 1.40. Currently in congestion, but I like today’s volume. Could see a few pennies to the upside tomorrow.
DSCO – I agree with copperstl on this one. Watching for the gap fill with first target at SMA50.
GIS – Testing SMA100 with a good looking MACD positive cross setup. Possible swing here, but I’m not convinced yet. We’ll need to watch it tomorrow.
IFLG – Crazy looking triangle setup on the daily. Notice the massive volume spike moves? That’s what we’re looking for on this consolidation on SMA200. A move north of SMA50 would be nice.
IDSA – If you’re able to get shares, this might be an ok SHORT setup. If I short, I’ll make sure to jump in below Tuesday’s open.
I’ll also be watching gold. Way oversold as many are venturing out of safe havens and into riskier trades like penny scalps. I love oversold sectors. I called out the other day to watch the new home builds news – some great trades there. Now, we have to watch gold.
That’s about it for now. Not a lot of great setups as showing up on my scans as many failed resistance today and reversed. Others appear overbought. Join us in the Boom Factory tomorrow as we find the movers and shakers.