5 Trading Days Left Before Christmas
The Santa Claus Rally is underway, with just about every stock on the watch list moving higher in the pre-market session. We will wait for the Trade of the Day setup for entries, especially on stocks ripping higher before the Opening Bell.
Watch List for the Holiday Week
The IBD50 is peppered with setups that will likely follow through and push higher this week. Many of the semiconductor stocks like AMAT and NVDA are on our radar, as SMH and SOX turned to an upcycle along with XLK and NDX.
All of the stocks in the watch list have similar characteristics, as RSI rises through 50. Look for this RSI “tell” in anything that you decide to trade this last week before Christmas.
Facebook reports earnings in early February, so there is plenty to be bullish about. MACD, STO, and RSI are pointing higher. Price action bounced off support on above-average volume. VBP resistance in nonexistent at this price zone.
China Lodging popped above resistance levels. Buyers showed up on Friday, forming a wick on the daily candle. RSI is rising, with MACD above its signal line. As price moves higher, there is less supply to hold the stock back. Target 142.00.
Stocks like PYPL, V, and MA will benefit, as shoppers ring the register this week. All of these stocks in the payment processing industry group look bullish. Volume, STO, MACD, and RSI all suggest we are heading higher. Volume is increasing.
With everything on the move this week, it still pays to follow some simple rules. Only take bullish trades when price action is above the 9/20ema daily.
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