As I write this on Sunday night, S&P futures are down 5 points. After a 13 point move last Friday, this pull-back is expected and very bullish. A gap-up would have overextended us way too much, and would lead to an easy short off the open. In my mind, a back-test and hold to about 1396 is very bullish and constructive for the long-term trend.
In researching hundreds of stocks this weekend, I haven't seen much of anything that is a "Grade A" setup that we usually look for at Elite Trading. There are a lot of stocks that finished the week as an 'inside week,' which is expected on a shortened trading week. Also, this proves that the market has reached some type of equilibrium, and preparing for a test between the bears and the bulls.
In short, I like this constructive pull-in so far, and I think a 2% digestion move is very bullish for the long term. I believe a lot of the "panic" selling has died down, and I have noticed a lot of shorts have started to cover - especially in the most beaten stocks out there (GRPN, JCP, HQP to name a few). Below are a few stocks that I'll be watching off the open in the morning.
FB - I am still long FB, and I expect a pull-in as well (at least initially). Tried to fill its gap off the open on Friday and had just no power.
KORS - Inside day on Friday. 51.75 Friday high, 52.76 is the 21-day moving average.
OCN - Inside week last week. 34.13 is the 8-day, 35.24 is the 21-day.
AAPL - 574-575 is definitive resistance, but a base above this will entice some buying (including myself).
SBUX - I'd like a dip into support around $50 - chart here
EBAY - Over-extended as well, but $48 looks like a good risk/reward play - chart here
FSLR - Still at resistance and in the middle of the cup and handle formation, probably won't get serious until we hit $26. (chart here)
In researching hundreds of stocks this weekend, I haven't seen much of anything that is a "Grade A" setup that we usually look for at Elite Trading. There are a lot of stocks that finished the week as an 'inside week,' which is expected on a shortened trading week. Also, this proves that the market has reached some type of equilibrium, and preparing for a test between the bears and the bulls.
In short, I like this constructive pull-in so far, and I think a 2% digestion move is very bullish for the long term. I believe a lot of the "panic" selling has died down, and I have noticed a lot of shorts have started to cover - especially in the most beaten stocks out there (GRPN, JCP, HQP to name a few). Below are a few stocks that I'll be watching off the open in the morning.
FB - I am still long FB, and I expect a pull-in as well (at least initially). Tried to fill its gap off the open on Friday and had just no power.
KORS - Inside day on Friday. 51.75 Friday high, 52.76 is the 21-day moving average.
OCN - Inside week last week. 34.13 is the 8-day, 35.24 is the 21-day.
AAPL - 574-575 is definitive resistance, but a base above this will entice some buying (including myself).
SBUX - I'd like a dip into support around $50 - chart here
EBAY - Over-extended as well, but $48 looks like a good risk/reward play - chart here
FSLR - Still at resistance and in the middle of the cup and handle formation, probably won't get serious until we hit $26. (chart here)
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