Hello, Bulls.
Hope you had a profitable day.
There are a few things I’m concerned about on the SPX, but am overall happy with the slowing of the falling knife and decreasing volatility.
Take a look at this chart. It’s a very basic daily, but it tells me a few obvious messages that keep me cautiously optimistic heading into Tuesday.
First, the volume – Not bad, but not boomin. No clear reversal here.
MA100 Resistance – the SPX banged against MA100, but failed to get through. Will it move through Tuesday? I would really like to see that move to encourage more long trades.
Here are a few stocks I’ll keep an eye on tomorrow for a possible scalps and short term long swings (based on technicals only)..
CIGX – Banging against trendline resistance and near MA100. The move was strong today, BUT on low volume. If we see a move through trendline and ideally, through MA100, with volume, I like it for a scalp (possible swing).
RTK – This stock hasn’t moved in some time, but I’m watching it because of the horizontal and MA200 support. I would love to see a breakout above 1.25 (target 1.75), but will definitely not hold if it falls under MA200.. really needs that support. A good example of a company with a similar setup that failed was HTM. Notice that the second it lost horizontal and MA200 support, it fell like a rock. So, jumping into RTK might be ok, but I’ll have to watch it like a hawk.
DPTR – The volume isn’t there yet, but I like the triangle and collapsing bollinger bands. Feels like a move is imminent. Possible quick scalp to 1.50. If it moves through, I’ll likely add to position and swing with trailing stop.
ACAD – Even after the 8% move today, keep an eye on this one. Just a hunch and less technical goodness. This will be on my scalp list with target of 1.48. Not really interested in taking this one for a swing.
ACLS – This is a possible swing trade opportunity. I am a big fan of channels trading up like this… makes for easy ins and outs. The in would be anywhere between the trendline and MA20 with a target of 1.80 or top of channel. Stop just below trendline (I would likely stop at 1.44 at this point – subject to change).
GTN – Watching for move over trendline for swing. If it gaps at the open, then I’ll wait to see if the trendline becomes support. If it does, I could swing.
That’s all I have for now. I’m still going to protect cash and shorten my trades and tighten the stops. Today’s action was not a reversal by itself. We need more confirmation.
Have a great Tuesday.
