Mar 21 Prep

In Long Setups, Short Setups on March 20, 2013 at 8:38 pm

While we expect that the market will resume its upward move, it is hard to deny that the composure of the market has changed. No longer is this the tide that lifts all boats with relentless buying. A more apt analogy is the market is now like a very old man trying to make it up a steep flight of stairs: slow and less predictable.

Conditions like these make it very treacherous for investors and swing traders to deploy new capital, yet they should be fine for our strategy as long as we remain vigilant and alert to any sudden changes.

LONG Setups:

  • DDD – continuing to form a constructive consolidation pattern around 200dma, expecting a bounce through 30 and toward 32.50
  • SPWR – truly a rock star today, great clean move on good volume, expecting continuation
  • ARUN – trying to bounce following a pullback to 20dma, expecting continuation
  • ENOC – narrow bull flag, seems to be preparing for an extension move higher and breakout to new highs
  • NTE – sick of hearing about this one? I am trying to shake it, but it keeps popping up in my scans – continuing to consolidate well above 50dma, one of these days it will pop through 14 on volume and ramp up to 15-16 before we know it, it’s that type of stock
  • APA – continuing to consolidate above 20dma, expecting a move higher toward 77.50
  • CELG – not convinced that there is great upside potential here, but like the very narrow inside day today, indicates a likely range expansion move back toward 115
  • UNXL – as mentioned in last night’s prep post, it may be super extended but seems determined to trample every single short. Not uncommon for a setup like this to enter the parabolic, blow off type move, which could take it to truly ridiculous levels quickly
  • XONE – nice yet somewhat loose bull flag, expecting a move through 31.50 and toward IPO highs
  • POT – trying to regroup around 20dma following pullback, expecting a bounce toward 50dma
  • RGR – trying to bounce off 50dma, expecting continuation
  • CVI – same as RGR
  • STX – nice flag combined with inside day consolidation, likely upside range expansion
  • LNKD – trying to bounce off 20dma following pullback, expecting a move higher
  • AOL – same as RGR/CVI
  • GIL – flat and narrow handle, expecting a strong breakout move through 39 soon, otherwise this pattern will stall and fail
  • SBGI – high and narrow bull flag, expecting a bounce through 18, but be alert for a possible failure here as well

SHORT Setups:

  • GNRC – seems to be stalling and rounding over, if it cannot hold 34, likely downside to 32.50
  • CI – failed breakout with a bearish reversal, signaling likely additional downside
  • AMSG – widening bearish wedge on daily finally starting to fail, if it cannot hold 32.90 it will start the move down toward 31 and 50dma
  • ALB – another bearish reversal bar within a bearish consolidation pattern, likely downside to 60

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