We are beginning to see signs of stalling despite the markets finishing higher for the 4th day in a row. Strong stocks sold off hardest, which is our first sign of this rally exhausting. 1225 - 1230 has been targeted as a resistance zone for longs entering last week and we have now reached that level. This would be a prudent spot to sell all longs. The rally came on light volume, we have some important economic data over the next two days, and upcoming holiday will likely make the market even thinner the rest of the week. For the active investor, this is now a spot to potentially test some small short positions and look for a move back to 1200.
SPY are beginning to stall as they come into resistance at $123.50. It would be prudent to trim some long positions, and begin thinking short in the short-term. The economic data coming Thursday at 10am with the ISM and Friday at 8:30am with Non-Farm Payrolls and Unemployment Rate should be very interesting. Will bad data trigger a sharp sell-off or will it be perceived as the final straw before QE3.
Here are two stocks that are entering overbought conditions and could be due for a pullback. Look for an 80-20 short-setup in these stocks.
AMZN has run $15 points in 4 days and it could use a rest. Look to test shorts as this is overbought in the near-term.
This rent McDonald's franchise IPO has made a big run with the market this week and it can be looked to as a short. Look to short in this area or higher and add as it comes back through yesterdays high.
Below are 2 charts that have bearish setups and should be looked to as shorts when the market heads lower.
This IPO was once acclaimed as the "Facebook of China". It has been plummetting since its introduction to the market and has a setup to make another move lower.
Agriculture stocks were the first group to show weakness today and this is the weakest of the group. The macro pattern is getting tight and it could be poised for a break below major support levels.
SPY are beginning to stall as they come into resistance at $123.50. It would be prudent to trim some long positions, and begin thinking short in the short-term. The economic data coming Thursday at 10am with the ISM and Friday at 8:30am with Non-Farm Payrolls and Unemployment Rate should be very interesting. Will bad data trigger a sharp sell-off or will it be perceived as the final straw before QE3.
Here are two stocks that are entering overbought conditions and could be due for a pullback. Look for an 80-20 short-setup in these stocks.
AMZN has run $15 points in 4 days and it could use a rest. Look to test shorts as this is overbought in the near-term.
This rent McDonald's franchise IPO has made a big run with the market this week and it can be looked to as a short. Look to short in this area or higher and add as it comes back through yesterdays high.
Below are 2 charts that have bearish setups and should be looked to as shorts when the market heads lower.
This IPO was once acclaimed as the "Facebook of China". It has been plummetting since its introduction to the market and has a setup to make another move lower.
Agriculture stocks were the first group to show weakness today and this is the weakest of the group. The macro pattern is getting tight and it could be poised for a break below major support levels.
No comments:
Post a Comment