Actionable Trades: SPY, AMZN, ARCO, RENN, MON,

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.

Actionable Trades: SPY, GMCR, CROX, ANV, APC, FCX, NFLX, AMZN,

And the bounce continues...  Today, SPY closed the day up over 2%.  Last week's 80/20 trade, a calculated way to buy the dip, stayed intact.  Although it was not an easy hold, as the SPY closed on the lows the following day, the stop of $110.20 was never violated.  Now it is time to highlight some resistance zones, as the easy bounce has now already happened. The first area of resistance is $122-$123.50.  This would be an area to sell longs if you have positions, and possibly test the waters for a short.  Heavy resistance area is $125.50-$126, which is a retest of where SPY broke down from.  Volatility will likely continue to wane as August wears on, and it would not be a bad move to scale back trading.
   

Below is the S&P chart.  It is still important to know the levels in the S&P even though most traders watch and use SPY as a trading vehicle.  Today, S&P closed over the 1200 level that it broke down from on the Monday that Moody's downgraded U.S. debt.  1225-1235 is a big resistance zone to sell longs and potentially look to test shorts.  1248-1268 is a heavy resistance area, which is a retest of the neckline from the Head and Shoulder's pattern that was previously targeted.




3 charts are highlighted below that have held up very well during the market correction.  They are showing relative strength to the S&P's as they are trading above the 21-day moving average, and are trading close to 52-week highs.






ANV is a gold miner.  With recent strength in GLD, gold miners could see some follow through on the longside as well.  Other gold miners are coming up to crucial areas, as well.  Look to NEM that is coming into a long term trendline, GOLD is hovering by highs, and AUY closed at new 52-week highs today.  ANV looks like it is setting up for an actionable trade, if it can close over $41.50-$42, with a momentum add through 52-week highs of $43.49.      




Below are 4 charts of stocks that are trading below the 50-day moving average and have not bounced as strong when the market rallied the last 3 trading sessions.  
  
APC is an oil stock that has had a decent bounce but is now coming into resistance of the 200-day moving average.  $75-$76 is the big resistance area for APC.  Look to this stock to short, on market weakness.  It is trading below key moving averages.



FCX is trading below key moving averages and has not been able to bounce with the market.



NFLX has not performed recently like the leader it once was.  NFLX has been showing relative weakness to the rest of high beta tech.  This stock is trading below the 50-day and 100-day moving averages.  $253 is the first area of resistance and $264 is heavy resistance.



Athough a market leader, AMZN is trading below the 50-day moving average and has been a bit sluggish in the bounce with the market.




Lastly, don't forget to follow-up on Thursday's lower pivot trades to see which stocks performed best.  A few that were mentioned are AAPL, which is now trading at $383 (the easy bounce target), DE is coming up to the $77 target (closed at $76.50 today), OIH has had a nice extension from the lower targeted area and closed at $137.57 today, and GOOG is still trading with in the wedge.