Feb 20 Prep

The path of least resistance is still up and there is every reason to believe this rally will continue. Having said that, it is also true that markets are most vulnerable when everyone is expecting them to continue going up, so we should be prepared for anything going forward. Luckily, we don’t have any overnight exposure, so we have the luxury of waiting for the markets to tell us what they want to do every day and then trading accordingly.

LONG Setups:

  • KORS – acted really well today and closed near the highs, expecting continuation toward 67 and beyond
  • RVBD – solid oversold bounce today on good volume, expecting continuation
  • SSYS – possible bullish reversal pattern, will be looking for a follow-through tomorrow
  • VHC – continuing to trade in a narrow range with support at 20dma, expecting a bounce
  • OSK – looks like it finally made its way over the 40 level and closed above it, expecting continuation
  • SRPT – nice bounce off 20 and 50dma, expecting continuation
  • XXIA – high bull flag, expecting a bounce over 21.50
  • FIVE – cup and handle formation, expecting a move over 38 toward 40
  • CTXS – nice consolidation right above 200dma, expecting a bounce toward 75
  • DDD – same as SSYS
  • IACI – constructive pullback to 20dma and two bullish tails in a row on higher volume, expecting a bounce toward 50dma
  • ISIS – a move over 15 on good volume will indicate the start of another leg up
  • QUAD – recaptured 20dma on higher volume, expecting continuation
  • THRX – narrow consolidation above 20 and 50dma continues, range expansion expected shortly
  • QIHU – continuing to move higher out of the consolidation area, expecting the move to start accelerating

SHORT Setups:

  • CRUS – rounding top becoming more defined, expecting continued downside to 26.50 and lower
  • SHW – bearish reversal today, although volume was not convincing, continuation possible tomorrow, next area of support is around 50dma/160 level
  • CPRT – bearish reversal, expecting a move to 20dma/35
  • MON – possible rounding over formation, but need confirmation before initiating a short position
  • ICE – overbought short setup becoming better defined, expecting additional downside
  • LNG – looks like it’s having a hard time staying above 20dma, if this level cannot hold, possible downside to 50dma
  • PKG – bearish reversal on strong volume, expecting more downside
  • VAL – bearish reversal, expecting downside to 60
  • DOW – failed again to rally to 50dma, expecting more downside
  • PCP – continuing to form an H-S pattern, a break of 185 signals downside to 180 and lower
  • XME – bear flag on daily and a failure to hold the 50dma level, expecting a test of 200dma

Not long ago a Wall-Street-Hedge-Fund-Finance-MBA guy, now a momentum trader. Father, husband, mediocre soccer player, numbers geek with a lousy sense of humor. Obsessed with risk management, tries hard to "make money every day"

Posted in Just Rambling

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