There is no other way to interpret today’s market action than to conclude that the rally is still alive and kicking. It was barely a red day and plenty of stocks continue to make strong moves on good volume.
Given this we will continue to favor momentum opportunities from the long side, but as you saw from our trading today, we will not hesitate to switch sides at a moment’s notice if the market’s tone or composure change.
LONG Setups:
- ARUN – bull flag with a narrowing range and another close near highs, expecting a bounce through 26 and breakout to new highs
- NTE – after weeks of watching and talking about this one, it finally made its way over 14 and closed above this level, will be watching for continuation
- SRPT – continues to consolidate in a very narrow range, expecting upside range expansion through 31
- ALXN – high bull flag under 50dma, expecting a resolution of this range to the upside and a move over 93.50
- ANIK – trying to break out of the high bull flag, expecting continuation but a pattern like this is more prone to failure
- MPC – as we mentioned a couple days ago, it remains very overbought, but price action still indicates a likely move to 95
- RGR – constructive pullback to support with a bullish bounce today, expecting continuation and a move through new highs
- XXIA – another high bull flag, expecting move higher and breakout to new highs
- FMX – constructive pullback to 50dma and a bounce off this level, expecting continuation through 20dma and toward the highs
- ASPS – nice base on daily along with very narrow consolidation around 200dma, expecting a move through 84.50and toward 50dma
- PSEC – found support at 50dma and now consolidating in a narrow range above 20dma, expecting range expansion to 11.40 and beyond
- WHR – another high bull flag with narrow range consolidation, expecting another leg higher through 120
- BG – consolidating nicely around 50dma, expecting a bounce and a move into the gap
- AUXL – narrow range consolidation around 50dma, expecting a bounce and move toward 19
SHORT Setups:
- GOOG – overall daily chart still bullish, but a short term rounding pattern suggests a possible pullback to 20dma
- SINA – bearish consolidation pattern about to resolve to the downside, next support area 45-46
- PETM – retraced most of the two day bounce and closed near lows, if it cannot hold 61.30, likely downside to 60
- CAT – bearish consolidation pattern about to resolve to the downside, expecting a move to 200dma
- JCOM – overbought bear setup in progress, if it cannot stay above yesterday’s low, possible pullback to 36/20dma
- GNRC – continuing to consolidate under 20 and 50dmas, failure to stay above 34 indicates likely downside to 32
- DDS – bounce from last month’s selloff seems to be running out of steam, expecting pullback to 77.50 if it cannot stay above 80
- MSG – as mentioned yesterday, this looks like a stalling overbought setup with weakness confirmed today because stock closed below 20dma, expecting a pullback t0 50dma
- TOL – rejected at 50dma and closed on the lows on higher volume, expecting additional downside
- OC – similar setup to TOL, next big area of support around 38
Noanet Trader 