Jun 27 Prep

Tomorrow has the potential to be a fairly challenging day. The last trading day of June and Q2 is on Friday which has been providing support to the current oversold rally and may continue for the rest of this week. On the other hand, the rally itself has reached levels where resistance and selling may start to increase. To top it off, the rally has been feeble and without much conviction so it may not take much to send it off course.

For all these reasons, we should be prepared to trade with caution tomorrow until the market gives us a clearer indication of what it wants to do.

LONG Setups:

  • ACAD – I am not pleased that I missed this bounce off 20dma today as I have been watching this one for days now. Still will be looking for continuation through 18 and a new push toward 20
  • CSIQ – very strong move on massive volume today, expecting continuation and a breakout to new highs
  • SRPT – the flat and narrow consolidation continues and it is getting a little old and tiresome, if it cant breakout with conviction relatively soon we are likely to see this pattern fail
  • REGI – strong bounce off 13 and 20dma, expecting continuation and a breakout to new highs
  • AMRI – constructive consolidation above 11 and key moving averages, will be looking for a move through 12 and possible breakout
  • IRBT – continues to bide time in a high bull flag, will be watching for a move through 38 and to new highs
  • SODA – somewhat sloppy on daily but nevertheless a bullish move off 70 level and 20dma, will be watching for continuation toward 75
  • CVLT – continuing to move nicely higher from the consolidation/pullback to the 75 level, expecting a move through 80
  • HTH – may seem overbought on daily but still within bullish consolidation above 16 and 20dma, will be looking for a move through 16.50 and a possible breakout

SHORT Setups:

  • VRX – bearish reversal and a close below 20dma and 85, likely downside toward 82
  • DDD – bearish reversal from resistance in the 45 area, likely continued retracement toward 50dma
  • HUM – daily chart still in undeniable uptrend, but having a hard time with the 85 level, should it fail to stay above 83.90-84, likely downside to test 20dma

Swing and position trader. Portfolio manager. Market technician. Former long/short hedge fund manager and prop trader. 20 years of market experience. You cannot succeed in this business without understanding and embracing risk. Opinions are my own.

Posted in Long Setups, Short Setups
5 comments on “Jun 27 Prep
  1. Josh says:

    Do you expect ^RUT rebalance demand to spike ACAD? Thanks.

  2. AJ says:

    Thanks for the post! Very informative for me.

  3. Mad Marsupial says:

    In your comments on where price is probably going, you don’t mention indicators like MACD, RSI, etc. Do you use any of them (other than price, volume & SMA) in your thought processes? Thx & GL today.

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