Mar 18 Prep

Despite a relatively strong close on Friday, upon doing my weekend review of 1,000+ charts, I came away with the impression that this market looks tired. All potential long setups look marginal and vulnerable and, for the first time in a while, I am seeing a lot more solid short setups.

Impossible to tell at this point whether this is the start of a correction or just another range-bound consolidation, but it is always good to note market composure and have a plan how to trade it. Going into tomorrow, we plan to give more emphasis to short setups and opportunities.

LONG Setups (8):

  • BIOS – high bull flag, but would need a followthrough over 12.93 on good volume before considering a long position
  • DDD – found support at 200dma, expecting a bounce off this level
  • RGR – bounced off 50dma, expecting continuation
  • GNRC – continues to consolidate in a narrow range and is staying above 20dma, expecting a bounce toward 50dma
  • JAZZ – possible cup and handle setup on daily chart with a bounce off 20dma, expecting bounce through 60
  • FMX – emerging from a consolidation pattern around 50dma, expecting a move through 112 and toward 115
  • MELI – high bull flag but would not get involved unless it pops over 96.10 on strong volume
  • MED – putting in a well defined bottoming pattern, expecting a bounce over 24 toward 50dma

SHORT Setups (23):

  • OVTI – bounce rejected at 200dma, expecting pullback toward 13
  • SINA – bearish consolidation pattern, possible continuation toward 45-46 zone
  • TRMB – bounce over 50dma failed, expecting downside to 58
  • DLTR – failing bull flag, if it cannot hold 44 level and 20dma, it will likely close the earnings gap
  • CELG – overbought short setup with plenty of room on the downside, first support around 110, followed by 20dma
  • CRUS – fairly oversold daily chart, but still seems additional downside likely, next support area around 22.50
  • WMT – failed breakout from a bull flag, back to 20dma and possibly lower
  • V – stalling and having a hard time staying above 50dma, 1st support area 154-155
  • AMZN – if it cannot hold the 260 level, likely pullback to 250 and 200dma
  • FB – rounding over, likely downside to 25
  • FLT – overbought short setup with failure to hold 20dma, next are of support 67.50, but has room to 65/50dma
  • OPEN – failing bull flag, likely downside to 20dma
  • TRIP – overbought short setup with two consecutive bearish tails, likely downside to 50 and lower
  • SODA – failed to break out over 50 and stay above 50dma, next significant support in the 45-46 area
  • AMSG – widening wedge pattern on daily is a bearish pattern, best short entry is under Fri low of 32.75, should pull to the center of the pattern around 31
  • CLGX – bounce running out of steam and unable to stay above 50dma, expecting pullback to 26
  • TV – classic topping pattern on daily, failure to hold 26 leads to 25 and 200dma
  • LYB – breakout failure with bearish reversal, likely pullback to 50dma
  • SJM – extended high flat flag, looks likely to fail and pull back to 20dma
  • ALB – bearish reversal with failure to hold 20 and 50dmas, likely additional downside
  • OMG – bearish wedge under development with inability to pop over 50dma, expecting move to 24 and lower
  • ROK – topping pattern on daily with failure to stay above 50dma, likely downside to 85
  • UPL – bearish reversal with failure to stay above 200dma, expecting pullback to 18-19

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"

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Posted in Long Setups, Short Setups

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