Greetings from Corfu in Greece. Didnt realize it but it is 7 hours later here. I will be watching the market here and there during the next 9 days. I expect markets to quiet down the day before and the day after July 4th. First…a few notes: Friday’s late action was russell rebalancing. A lot of stocks had massive volume into the last few minutes. I wish these morons would get it done earlier. Next week is not just end of month…but end of quarter…so thinking market will not get cheesed. That said, the news will remain fluid. I am here at supposed ground zero and there is just a lot of awful talk. I was in Italy yesterday…and not great shakes there either. Thursday’s action was gross as the market sold off right into resistance…at the 50 day/10 week moving average. Many technicians are now very bearish because of it…but I must tell you, it is normal to stall at resistance before potentially moving above it. Not saying it is going to happen…just keeping open all possibilities. I really liked the action in leaders on Friday. A lot of pulling in because of Thursday but a lot of holds on Friday with some stocks setting up in tight handles. Here is the list:
AAPL-pulled right into 50 day and so far held. If it decides, add breaking above the 590 area. Very tight action…but needs to hold 50 day. .
AMZN- tight action…needs to move above 226. . ALXN-failed 95 pivot but not back at it.
BIIB-still strong but slooow earnings. CRUS-failed 29.50 breakout but now back near it.
CERN-suspect action coming straight down but holds the 50 day…so far.
DLTR-still fine and holding above 21 day…minor pullback so far.
EBAY-holds breakout with good pattern.
EXPE-pulled back but still strong riding up 21 day.
FDO-not thrilled with pullback but still holding.
EQIX-fails breakout and heading back into 50 day
. MNST-finally breaks 21 day…heading into 50 day.
PETM-strong…just pulls into 21 day.
SHW-pulling towards 50 day.
SWI-holds 50 day Friday.
TRIP-breaking out on friday and looks buyable in here.
TJX- still ascending but slower.
UA-harsh drop back into the 50…volume patterns turning negative.
ULTA-sitting tight near pivot after strong reaction to numbers.
I am also now watching:
LNKD…in a handle above the 50 day…a potential buy moving above handle…107.
CMG in a handle above the 50 day…a potential buy moving above handle…419.50.
PCLN in a handle but below the 50 day…needs to leap above.
V looks like it is breaking out here but have to see how much was the rebalancing.
MA also breaking nicely above the 50 day.
So as you can see…even with crappy action Thursday…all these names look good. You can probe any of the names sitting on the 50 day with stops below so very low risk…or any names breaking above handles mentioned …but I must tell you…right now, the better plays are on the pulling in. I would continue to play small…as the markets are a pain in the rear…but I am highly confident this list is the best list out there. If you decide to probe a handle breakout and it tucks its head in like a frightened turtle, dont just sit there. You can always buy back…but again, small positions give less risk until success comes.