May 10 Prep

If there was a glimpse of weakness in the markets today, it is hard to see in the individual stocks. Still a great deal of strength out there, so I think what we are most likely to see is some sort of a sideways consolidation in the next couple of days.

LONG Setups:

  • YELP – we traded this one intraday, and despite closing off the highs, the daily setup still looks constructive, will be looking for a move through 31 and higher
  • CZR – basing around 15 and key moving averages, expecting a bounce higher
  • AEGR – high narrow flag, looking for continuation and a breakout to new highs
  • SBGI – after consolidating in a very narrow range for the last five sessions, it finally powered higher on huge volume, will be looking for continuation and a breakout toward 30
  • ALKS – been talking about this one this whole week, it is still consolidating constructively above 20dma, but it is taking too long to make its move which makes this setup prone to failure, will be watching for a move through 30.20
  • BBRY – had this one in yesterday’s prep and were expecting a bounce off support which happened today on good volume, now we look for continuation
  • MGAM – extremely overbought with a high narrow flag, but another move higher still possible

SHORT Setups:

  • FLT – seems to be rounding over following the bounce off 80 level earlier in the week, likely downside to 80 and then gap close
  • AMGN – how many times did we mention this one? still putting in a bearish consolidation but refusing to roll over, daily chart still bearish with likely move to 50dma
  • LNKD – attempted to bounce today, but failed and again closed under 50dma, if 175 level fails, likely pullback to 170
  • BBY – also attempted to bounce and failed, now likely pullback to 20dma and gap close
  • CAT – very extended short term and failed to stay above 90 today, expecting retracement to the 88 area
  • POT – very similar setup to CAT, will be looking for retracement to 43 and lower
  • VRX – toppy daily chart, could be starting to roll over, next support area around 70

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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