Saturday, February 25, 2012

Saturday Morning Setups and Market Outlook for Week of February 27, 2012

 Hi traders - here's your look at the week ahead.   The past week wasn't awful, but at least for me, it certainly was much more challenging than past weeks.  We did not see as many stocks moving as we did in January and early Feburary, where seemingly every day big winners could be found.  We also did not see the same type of follow-through on moves that we saw through January and most of this month.   That's not to say that stocks didn't move - just that they were fewer and farther between, and whipsaws were more prevalent.   I guess that is to be expected in a consolidation period, which is likely what we're seeing here.

In terms of the indices, both the Nasdaq and S&P continue to ride their nine day moving averages higher, and as long as they do, I can't get bearish.   I will continue to ride long setups as long as this support holds.   When it breaks, then it will be time to go to cash for a bit and allow the market to right itself.
S&P 500
All Charts from TC2000, Courtesy of Worden Brothers, Inc.

The Russell is in a very interesting position here.   Small caps have moved sideways much more than big caps have the past two weeks - that could allow for a bigger breakout for the small caps (see below) but it could also just point to a lagging group that will fall farther if or when the market finally decides to correct. 

I really didn't find as many setups this weekend as I have in past weekends.   The ones below are all of the ones on my watchlist, whereas normally I narrow my watchlist down and try to post 10 or so that stand out to me.   I don't know if that is saying something about the overall market here or not - we'll have to wait to see.   I am still long (actually I'm fully invested) so I don't know how many new positions I would be adding anyway unless I unload a few first.

All Charts from TC2000, Courtesy of Worden Brothers, Inc.

Here are the earnings names I will be watching this week.  I've checked these names in ThinkorSwim to make sure they do report and according to the TOS data, the list is accurate.   These are names that are either setting up in consolidation patterns or have been neglected and are beaten down.  

Good luck next week and enjoy your weekend. 


Chris Perruna said...

Great work on the blog and twitter - surprised I didn't find you earlier. We are very similar, at least with research approach through CANSLIM and setups (time frames are slightly different with me being longer term).

jimmyJ said...

Enjoying your blog for years now. CJES possibly the cheapest play of all cause of frac moratorium concerns maybe overblown in an election year. This level just tuff nut to crack. New names or new reasons, all emerging stks possibly for 2012. IMPV UBNT SYNA THLD ABMD JIVE XPO HALO KORS. Studying hard this wkend Bakken and Eagle Ford shale plays including SN WLL TPLM GEOI KOG.
All above mentioned hold now or trade but prefer long term holds/swing trades as long as well the trend lasts anyway.

Mac said...

Thanks Chris for the kind words - I know you run a very good blog as well. I think we're both in similar situations in that we have full-time jobs (if I'm not mistaken) so similar approaches makes sense.

JimmyJ - I watched KORS and JIVE closely this week and was in KORS but it has traded weakly late in the past three sessions. JIVE I just passed on because I thought it would whipsaw. I'll check out the other plays. Thanks.