Apr 5 Prep

Tough to figure out where the market goes from here. The most likely scenario is an attempt to continue today’s choppy bounce. However, in case of an unexpected event or catalyst the market is definitely vulnerable to more downside.

Regardless, our plan remains the same: look for very oversold stocks ready to bounce (like CF today), stocks showing relative strength, or stocks that are just starting to roll over and could be potential shorts.

LONG Setups:

  • DDD – constructive pullback to 30 and 200dma, will be looking for a bounce
  • DDS – strong move through 80 and 20dma with a close on the highs, albeit at a mediocre volume, expecting continuation toward 50dma
  • BKS – also a strong move through 20dma on mediocre volume, will be looking for continuation through 17
  • MR – high bull flag, expecting a breakout through 40 and to new highs, but this type of pattern is prone to reversals and failures during corrective markets
  • AEIS – pullback to 50dma with a bullish reversal, expecting continuation
  • PJC – oversold bounce setup in process, need to see a more definitive bullish reversal pattern put in place

SHORT Setups:

  • ISRG – still looks like its having a hard time in this area, if it cannot stay above 490, likely pullback to 470 and lower
  • RVBD – unable to get over 15 and 20dma, yet refusing to roll over as well, will be watching for a move under 14.80 and toward 14.50
  • WMT – overbought short setup in progress, if it cannot stay above 76, possible pullback to 74/20dma
  • GNRC – having a hard time staying above 34, should this level fail, next area of support is in the 32.80-33 area
  • WHR – found support at 50dma, and could stage a temporary bounce from here, but seems vulnerable to a selloff to 105

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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