The Closing Print live trading and financial blog during market hours.

The weekend video news letter addressed the IBD50 lack of setups, as BABA exemplifies. Many of the stocks on the list show price action below the 9/20ema, with MACD either flat or trending lower, along with weakening RSI.

BABA tested the 50ma on Thursday, with Friday price action rejected at the declining moving averages. Additional stocks ini this state are ACIA, AMAT, ANET, AOS, EW, GIMO, IPHI, PRAH and THO as most obvious in this predicament.

baba-short

There are pockets of strength however, as IGT suggests. RSI is embedded, MACD shows bullish momentum continuation and volume speaks of institutional interest. SOTEMA is bullish.

igt

Education stocks like EDU exhibit relative strength as well. New Oriental Educations is scheduled to report earnings on 10/25/16, therefore any trades would be short term. With RSI oscillating above 50 and MACD turning, there is the possibility that EDU breaks higher this week.

edu

DLR and COR are specialty REITs, which have pulled back significantly from their 2016 highs. These are conditional trades, in that COR has broken a descending pattern and DLR shows it might follow. If these stocks change trend there should be ample places to start new trades. DLR and COR are both estimated to report earnings on 10/27/16.

dlr

ALK exhibits similar characteristics with other airlines. RSI is trending higher as MACD exhibits increasingly bullish momentum. ALK is scheduled to report on 10/27/16.

alk

Air Canada broke out of this triangle pattern last week. While RSI is embedded, we reference this stock as a Canadian play, should a flag form in short order. Note the obvious volume, after the company received $1.25B in new financing for its continued operations and debt retirement. Earnings are scheduled for 11/07/16.

ac-to

DUST – The Daily Gold Bear x Shares.

If you’re interested in trading GOLD to the short side, look for the dollar to continue its bullish ways. Use DUST as one possible tool to ride the trend. Junior Miners (JDST) is also an option.

dust

Renewable Energy (REN) is one stock in the oil and exploration industry group that has faired well over the past 3 months, as energy shares continue to outperform. Note the volume.

ren

Essent Group Ltd. (ESNT) is estimated to report earningson 11/03/2016. RSI and MACD suggest higher prices may be in order as earnings approaches.

esnt

Royal Bank of Canada broke this trend last week. RSI and Bollinger bands suggest higher prices, though MACD is flat. We’d like to see momentum pickup. Volume presents a possible catalyst. Earnings are estimated for 11/30/16.

ry

We had to search hard to find candidates this week, so therein lies the dilemma for bulls. Breast s deteriorating and participation is dwindling. If these two issues fade and the dollar, yield issues fall away, perhaps bulls can salvage this recent decline in the indices.

If you don’t see your favorite stock presented herein, its likely due to several factors. Be sure to check RSI and MACD for momentum. There are several candidates on the watch list that I haven’t posted in this review, due to space and time.

Happy Trading – Vinny



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