I'll be away rest of the week and will update the blog next week. Meanwhile, check out MY DEL.ICIO.US, which has some very good readings. On the trading front, expect range bound action until Fed policy statement on Wed.
Tue: Consumer Confidence Notable earnings: JBL
Wed: Durable Orders, New Home Sales, FOMC Policy Statement Notable earnings: MON, BBBY, NKE, ORCL, RIMM
Thurs: GDP, Initial Claims, Existing Home Sales Notable earnings: PAYX, LEN, ACN Fri: Personal Income, Personal Spending, PCE Core Inflation Notable earnings: LEN
Above chart of Google Inc. (Nasdaq: GOOG). Since its gap up after earnings, it has been coiling. It is currently sandwiched between the major moving averages and also in triangle formation. A breakout should be coming soon, set your alert at around 550 and 575.
We have some financial heavy weights reporting this week and they could be market moving if surprises are in store. Not forgetting this is options expiration week.
Mon: NY Empire State Index Notable earnings: ADBE, LEH
Tue: Building Permits, PPI, Housing Starts, Capacity Utilization, Industrial Production Notable earnings: BBY, FDS, GS Wed: Notable earnings: CMC, KMX, FDX, HWAY, MS Thurs: Initial Claims, Leading Indicators, Phil Fed Notable earning: CC Fri: Options Expiration Watchlist for the week: Lots of potential breakouts and flags forming. Keep a close watch and always remember to best wait for confirmation with good volume for breakouts. Bullish: MFLX, GMXR, HP, EV, MON, CNX, HP, TDW, STLD, FLS Bearish: BNI, LMT, ESRX, PPH, RIO, PNRA, DRYS, CBG, DVA Triangles: NUE, SNP
An update on stock screeners which I talked about early last year. Here's 2 additions to the list:
- Stockcharts.com: For the free version, it is a pre-defined scan, such as Bullish 50/200-day MA Crossovers, Bullish Engulfing pattern etc. It scans for technical indicators, candlestick patterns and P&F patterns. To create own scan, you need to pay a fee.
-Tradewithform.com: Able to scan for bull flag and bear flag, Narrowest Range in 7 sessions (NR7) etc. Also pre-defined scan that is free of charge.
I'm seeing lots of triangles forming right now and be prepared for a breakout in these stocks:
Franklin Resources, Inc. (NYSE:BEN) Franklin Resources, Inc. (NYSE:BEN) - Ascending triangle with breakout point at $105. Look for around $10-$12.5 move if it confirms breakout with good volume. Family Dollar Stores, Inc. (NYSE: FDO) Family Dollar Stores, Inc. (NYSE: FDO) - Ascending Triangle that is breaking out. Gapped up above 200MA this morning. Sigma-Aldrich Corporation (NASDAQ:SIAL) Sigma-Aldrich Corporation (NASDAQ:SIAL) - A symmetrical triangle looking to breakout. But watch for a few resistance overhead, with most immediate one being $60 Apple Inc. (NASDAQ: AAPL) Apple Inc. (NASDAQ: AAPL) - Another symmetrical triangle looking to breakout. Look for around $13 move. Amylin Pharmaceuticals, Inc. (NASDAQ:AMLN) Amylin Pharmaceuticals, Inc. (NASDAQ:AMLN) - Not really a triangle, but more like a cup & handle or inverse head & shoulder. Breakout point $33. Looking at at least $3 move. If it can fully complete the extension, then we are looking at about $6 move. But that will probably be over a longer time frame. Remember that symmetrical triangle can break either way. Wait till near end of trading session to confirm if it can close above these breakout point (or below if its a breakdown). I prefer it to be accompanied with high volume.
Below is a chart of GLD. Its been range bound for the past 2 months or so and appears to be forming a triangle-like pattern. For now, I don't see great opportunities for GLD until it breaks out. Unless you want to consider the bounce up to the top of the triangle as a short term Call play.