Week of 12/17
After Friday's sell-off we have set ourselves for a very interesting start of the week this week. We have reached the apex of our broadening formation, the equilibrium in which we will deem as support or resistance very shortly. As of tonight, it futures show a positive tone, up about 5 points on Boehner's words and updated stance on the Fiscal Cliff. Yet again, the market is being driven by outside news; and yet again we must be quick on our feet and manage positions extremely well until we have a definite trend in place. I still am bullish heading into next week, and hoping that we see support at 142, rather than a gateway to another lower level.
Coming in to Monday I am long December puts in AAPL, and long NFLX December calls (still with the 100 target).
The biggest thing that I will be watching heading into next week is the Financial sector. As I said last weekend, I feel a true "rally" is not 100% true unless the financials are involved. Holding 15.75 is key support coming in to Monday, as many of the banks look fantastic. Right now my top financial interests are BAC, JPM, and GS (through 120).
Another sector that perked up on Friday is the Energy sector. The XME's held support at the 200-day and were up almost 2%. I think we may have some trouble heading into $46, but seeing it hold this upward channel is great for the overall market.
The XLU's fell under the 8-day on Friday, and it seems that $35 will be the next level of support. The utilities had been holding higher, and it was a shame to see them not flex their muscles on Friday's down day. However, I sill think that $35 will hold and will be a good spot for an entry (against the 21-day).
With the market still in "limbo" it is extremely important to find the stocks that are showing strength and conviction in this indecisive market. Holding positions overnight has been tough as of late, if you are not in stocks that are proven. For instance, holding MNST last week seemed like a no-brainer. However, when we sold off on Thursday we quickly saw that it was not as strong as we'd have liked.
Despite the fact that the market is still uneasy as a whole, there are still great setups and sound low risk/high reward trades out there. As we have posted on our Closing Recaps as well as last weekends Weekly Watch, US Steel is on breakout alert.
In addition, here are a few more charts that we are watching into this week:
FAS - i REALLY like this one, 115 is clear resistance - time your buy on this one
GMCR - looks like it could make a run to 60
SBUX - for a possible move to 55
LNKD - holding 111 for a move to 118
ARNA - if it holds 9.00
WYNN - like to hold the 8-day
LVS - a good buy around 45, wouldn't chase at this price
FLO - watch how it acts around 24.15
LULU - wouldn't chase here, but keep an eye
FB - support off the 21-day seems like the lowest risk/high reward play
Coming in to Monday I am long December puts in AAPL, and long NFLX December calls (still with the 100 target).
The biggest thing that I will be watching heading into next week is the Financial sector. As I said last weekend, I feel a true "rally" is not 100% true unless the financials are involved. Holding 15.75 is key support coming in to Monday, as many of the banks look fantastic. Right now my top financial interests are BAC, JPM, and GS (through 120).
Another sector that perked up on Friday is the Energy sector. The XME's held support at the 200-day and were up almost 2%. I think we may have some trouble heading into $46, but seeing it hold this upward channel is great for the overall market.
The XLU's fell under the 8-day on Friday, and it seems that $35 will be the next level of support. The utilities had been holding higher, and it was a shame to see them not flex their muscles on Friday's down day. However, I sill think that $35 will hold and will be a good spot for an entry (against the 21-day).
With the market still in "limbo" it is extremely important to find the stocks that are showing strength and conviction in this indecisive market. Holding positions overnight has been tough as of late, if you are not in stocks that are proven. For instance, holding MNST last week seemed like a no-brainer. However, when we sold off on Thursday we quickly saw that it was not as strong as we'd have liked.
Despite the fact that the market is still uneasy as a whole, there are still great setups and sound low risk/high reward trades out there. As we have posted on our Closing Recaps as well as last weekends Weekly Watch, US Steel is on breakout alert.
In addition, here are a few more charts that we are watching into this week:
FAS - i REALLY like this one, 115 is clear resistance - time your buy on this one
GMCR - looks like it could make a run to 60
SBUX - for a possible move to 55
LNKD - holding 111 for a move to 118
ARNA - if it holds 9.00
WYNN - like to hold the 8-day
LVS - a good buy around 45, wouldn't chase at this price
FLO - watch how it acts around 24.15
LULU - wouldn't chase here, but keep an eye
FB - support off the 21-day seems like the lowest risk/high reward play