Today was a really weird day, and my scan numbers affirmed that. First, you have oil down $2, but the market didn't respond at all. Yesterday, oil was up big, and the market rallied. In terms of numbers, there was almost an equal number of upside(199) to downside(231) breakouts today, which is quite weird with the Dow and S&P down a significant amount. There were stocks that moved higher today, and I didn't see that many really heavy breakdowns outside the earnings realm. So maybe, today wasn't as bad as the market averages suggest. Volume was slightly lower on the S&P and Dow, and slightly higher on the Nasdaq.
So what's in store for us tomorrow? I really don't know - my hunch is that we are due for a further pullback, perhaps to the bottom of these ranges. The market is slightly overbought and my momentum scans show that we are at an area where typically stocks pull back. Of course, the jobs number comes out tomorrow, and I would guess that will dictate things more than anything else. Now that the market doesn't seem to care either way about oil prices, we have to look for other influences that will drive trading. Bottom line is I wouldn't be surprised of anything the market does right now.
Here are the stocks I entered today. VISN is the star of this market right now and looks better than any other chart I see out there. I pointed out this chart as one to watch here. I still am steamed that I was run out of this after earnings. What happens with this stock will tell me a lot about this market overall. So far, we haven't seen good earnings rewarded too much.
Before I get into the charts, I will preface it by saying what I've been saying for a while now - this still isn't the time to push things on either side of the market. I have been making a few trades, but most of my money has been in cash recently and my positions have been smaller than normal. It is too tough and too choppy to be going heavily into any stock right now.
Here are some long candidates I am watching if we somehow continue higher. I see a lot of flag patterns setting up, and this first group contains some my favorites.
Others I am watching include UAUA, STEI, ODFL, CEC, IDRA, ABAT, ARBA, WAB. The main problem I have is that I am seeing very few charts with high levels of BOP - a Telechart indicator that measures the underlying accumulation in stocks. By looking at VISN and VRUS, you can see what high levels of BOP look like. Most of the charts I see are yellow, indicating neither accumulation or selling in the charts.
We could pullback here, so I would consider a few shorts, again in small positions and with modest profit targets. Here are some of the best setups I see.
Some others I am watching for possible breaks of their 50 day MA (as they have rallied weakly right up to them) include RCL, FBP, OZRK, NMX, ERJ, WBS, and DMLP.
Best of luck tomorrow. The way things have been and look like they are going to continue to be, I think we all need it. At least tomorrow is Friday, and we can take a few days off after that. Off to look for a new TV - good trading Friday.