With futures pointing to a chartreuse open, we’ll look to setups that have pulled back to support levels, whether they be VBP, moving averages or break out zones.
Refer to the watch list for earnings dates, entry and exit points.
Semiconductors continue to be one of the few industry groups which reflect reflective strength. MXIM should break higher. VBP is the next hurdle. If the stock moves above that area, little overhead supply exists to resist further appreciation in shares.
BBY broke above resistance on Friday, but has not moved too far away from the breakout zone for a trade. Bollinger bands are tight.RSI, STO and MACD all suggest higher prices are in order. BBBY was also on our radar last week.
Large department store retailers have broken out of bases. Kohl would be a great entry, if and only if, we see a pullback or flag. Do not chase it. 
We like Nordstrom for the same reason. Note both of the retailers occupy the #1 and #2 ranking in their industry groups. Wait for a pullback or flag.
Tiffany occupies the #2 spot in its industry group ranking (IBD) with NILE at #1. A break out seems imminent into Christmas.
TPIC is a momentum stock we follow. Try of an entry as close to Friday price action as possible. The stock will likely follow through at some point in the near term, so stops are indicated on the chart where would would consider exiting. The company produces blades for wind turbines used in alternative energy sourced products. Certainly this industry will continue to grow.
YRD has potential. It does have a tendency to shake traders out of positions, so be aware your stop could be hit and then see the position reverse in the opposite direction, leaving you scratching your head. The stock appears to be building the right side of a cup pattern. Target 42.00.
WST is building a base just above its 200ma. A push above the 20ema would signal increasing interest. RSI suggests this might happen soon. Note the stock is on a buy signal since Tuesday.
WOOF peeked above its trend line on Friday. Look for a follow through as RSI, STO and MACD suggest that we could see higher prices in the short term. Stop if we move back inside the base.
ARRS is a new IBD50 candidate. I am not suggesting chasing here. What we’d like to see is nervous traders take profits and the stock only pullback approximately 50% or less into Friday’s price action. The telecom equipment sector has been producing stellar candidates.
Footlocker is at a decision point. One mans double top is another ascending triangle. RSI, SOTEMA and STO suggest we will move higher. Depth of pattern is approximately 5.00 points, so if we breakout this week, our targets would accommodate this percentage gain.
This was a quick run through of stocks we are looking at this week. Also remember banks are reporting. The recent post covering these institutions should be reviewed for potential trades, as well as, semiconductors and telecom shares that have pulled back to support levels.
Funds could be buying today. so watch for signs that they are interested.
Happy Monday,
Vinny
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