We ran some MarketSmith Scans last night, with the Blue Dot and Relative Scans producing numerous setups. Now, these setups need the indices to follow through, as we look to the 2600 zone as support.
Markets saw more advancing stocks versus those that were declining.
MarketSmith Blue Dot Scan
This scan looks for stocks breaking out of a base, with a rising RS line. Three are on the watchlist, with SIMO and INCY performing the best on Tuesday. MSFT stayed behind, though it is trading higher this morning. Look for all three to follow through today.
SIMO performed the best +5.25% on the day’s session. The RS line is rising fast, with price accelerating on above-average volume.
Earnings are scheduled for the first week of May.
With futures pointing to a bullish open, we’ll also look to take some of the Facebook (FB) options off for a profit that we trailed from Tuesday’s entry. Those were bought for 0.10 just before the 11:00 AM reversal. We sold the majority of the position at 0.27 for a 170% gain.
We’ll scan the markets for more “big institutional” size options trades that have been occurring during the opening range, so join us today in the trading room for our LIVESTREAM broadcast
during market hours, as we navigate the current environment. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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