We covered our thoughts for the week in the weekend video newsletter. If you haven’t watched it, please do because there are a number of indicators that we will be watching therein.
Additionally, the thoughts for sector rotation at the 19:45 mark and IBD50 start at 25:05.
Watch List for the Week.
We anticipate adding candidates to the long and short list this week, so we kept a few open slots for that purpose.
Below are stocks that we are considering for swing candidates. We’ll also consider adding to positions from previous watch lists that still look bullish for swings into this week. All of these are trading post-EPS.
ANET is expected to break above the large volume by price (VBP) resistance level at some point in the short term, as it squeezes between the 9/20ema and overhead pivots. Watch for telecom competitors to echo similar results.
ALGN broke out of a bullish consolidation pattern last week. The stock closed a top the 50ma, showing a possible break above the VBP resistance level that has kept the stock below 92.00 last week. Health care stocks should continue to make this candidate look attractive, unless the sector sees selling this week. Measured move is a depth of pattern around +5.00. The company reported on 11/03/16.
Microchip Technology (MCHP) is showing a pullback to breakout pattern (PBBO). No doubt many semiconductors will get a lift from NVDA earnings this week in sympathy. Price action is above VBP so this level below price is now support. MACD and RSI look bullish. MCHP reported earnings and a beat of 18.42% on 11/07/16.
Tanger Outlets (SKT) is a REIT in the retail outlets category. We are watching for price to either move above the 9/20ema for a long or a move lower for a short. The stock is trading post-EPS.
Some biotech stocks are below their 52 week highs. As we reported on Saturday, in a post targeting this industry group, many of these names could help fuel higher prices in XBI, IBB and LABU.
JUNO reported on 11/09/16. Watch the Kirby. If prices stay above this level at 31.00 we could see a flag before the stock moves higher. Target is the top of the Kirby ceiling at 40.00 (+/-).
ABBV – same thoughts at JUNO. The stock is trading post-EPS. If we move above Thursday pivot high in the short term, this one could attack 67.50 in short order. Trail your stops below of the low of the day. Adjust each subsequent day, as we ride this higher.
The same goes for ACAD. Carmen, among others in the room traded this one back in March for a nice ride the first time around. If we move above the horizontal ACAD could keep going. Watch RSI and STO for a better entry, perhaps after a flag forms at current levels. The stock is trading post-EPS 11/07/16.
We traded ARIA before as well. Watch for a flag. ARIA reported a 23.62% surprise on 11/07/16.
There is a lot to consider this week, as many sectors are overbought. That said, watch breadth indicators and possible sector participation increasing, from those that experienced selling last week. XLP XLU. We need catalysts to push higher.
Happy Trading and Good Luck this Week.
Vinny