SPX and setups for Wednesday

Now that I’m back in the saddle after packing up and moving, let’s start talking charts, trades, swing setups, etc. I’m a little pissed that I missed the big run over the last few days, but I did manage to take some great profits in CRUS. Right now, I’m sitting on some PQ and eager to get more involved this week.

First, let’s look at the SPX and some general direction scenarios.

From the economic calendar, there are a few events that could influence the morning mood – Retail sales and business inventories. Get your retail stocks together just in case the numbers are strong.

As you know, we’re in the heart of earnings season. Tomorrow we’ll see what JTX and MAR have to offer. Put JTX on your scalp watch list for the morning. The market should be in a good mood tomorrow thanks to Intel, despite unattractive attractive export/import numbers today. This could translate to a JTX gapup… but careful chasing. Wait for support pullbacks and participate in volume moves only with either trailing or tight stops.

Let’s look at the SPX:

Keep an eye on the big pictures.. for now, we’re still in a downward trending, wide channel. After all of these days in an uptrend, is it time to give a little back? Charts say yes, but Intel’s numbers and mornings retail #s could give it enough energy to keep SPX above trendline resistance. I want to be long above this level or short below.

Notice how it is a little clearer on the weekly chart:

With that in mind (we’re testing resistance), here are a few stocks to watch Wednesday if the market is bullish.

CYPB – scallop bottoming formation with improving volume. Would like to make a quick scalp or swing to SMA20 near 2.75. Might wait for entry about 2.35 for better confirmation.

JMBA – I still like Jamba, but want to see it get through trendline resistance in order to consider a long play

NWY – watch for volume breakout move above SMA20 for possible scalp.

AKRX – I’m digging the volume accumulation and the trading range consolidation. I’m looking for a long trade range above 3.20. Would like to see MACD positive cross to confirm long. Only concern – Full Sto a little top heavy.

LAVA – looking for move above 3.30. Nice MACD positive cross. Possible swing above these levels. Reversal could open a short position.

RNWK – Banging against SMA20. A retest tomorrow with volume could get me interested. Full Sto rounding bottom attractive.

PMI – Testing SMA200. Possible swing above with 4.0 target short term. Not interested in holding below SMA200.

PAET – Not a bad move today. Testing SMA50, but I like the play long above SMA200, but watch until it gets there.

MTSN – Falling wedge formation with positive MACD cross and rounding bottom Full Sto. Possible good swing setup IF it gets above SMA100. Watch volume – we’re trending up slightly… let’s keep it that way and we’ll see good swing moves.

CPE continues to consolidate on the daily and hold trendline. I’m looking for a move above top trendline (6.65) before swinging long.

BLC – Decending channel trade now testing top of channel with positive MACD cross and improving Full Sto. I’m long above trendline resistance, but not before.