I’m still very cautious right now and not overly confident that Friday’s bounce put in an official low. However, Monday does look good to open up higher. The real test will come mid-week. We’ll see by that point if the bottom is in or if we’re starting to point back down. So, with that, I’m looking to play the long side tomorrow and will be paying particular attention to the following based on some scans I ran this evening:
RAS – Reversing off SMA200 and SMA100. Entry above 2.08 with stop under SMA200. Of course, movement here will depend on the sector – won’t move without other bank moves. First target, SMA50. PCBC looks ok, too, on improving MACD and consolidation on SMA200. I’m not comfortable holding PCBC, but a scalp might work.
UCBI – Here is another bank stock on my radar. Currently testing horizontal resistance (failed to move through Friday) on heavy volume. If it breaks through on Monday, it might be work a look for move to 6.10 range.
PZG – If we see continued strength in gold, this is not a bad looking chart for a swing. Be careful with swings in this market, but this one looks pretty good as long as it holds trendline support.
Looking for some mining companies? These three showed up on scans this evening. Good candidates for short term moves if money comes back into minerals this week. Otherwise, avoid for now. SLW, SA, FRG
ARTG – Double bottom support from February’s lows. Another possible swing candidate with tight stops. Lots of room above.
FIG – Bounced nicely off of horizontal support Friday. Would like to see MACD turn bullish, so I’m just watching for now, but a stock with 4 bottoms is either going to pierce strongly below or swing to the bull side.
CEMJQ – I always have an eye on channel trades. If CEMJQ holds trendline tomorrow, I might take a small swing position and look for a move to top of channel over 1.8. Before I do, however, I’ll need to check out the news for Chemtura and make sure there aren’t any surprises.
That’s all for now – Sectors of particular interest to me tomorrow – minerals, oil, financial. I’ll also have an eye on solar as some of the big names out of China report earnings.
Be careful with your trades this week – lots of economic news that could make or brake your portfolio. I’m going to remain heavily in cash and will definitely limit the number of swings. Time to go scalpin.
See you in the Boom Factory.