Sunday, June 10, 2012

Stock Market Outlook for Week Ahead - Cautiously Bullish - 6/10/12

We saw a lot of volatile trading this week on Wall Street with a nasty reversal on Thursday, but overall the action was quite positive.   Some consolidation may need to occur first, but it's possible that we could be forming a bottom here.  Of course, since there is so much news still out there (see Spain this weekend) and since no one exactly knows what the news will be AND how the market will react to it, I also think there is a good chance that we see a market that's sole purpose is to screw around with people.  We saw it all last summer and I am thinking it may happen again.   We'll have to see.

Technically, there is still some overhead resistance to deal with on all of the major indices and again, some backing and filling would be preferable here in my opinion to allow individual stocks to set up better.   If we pause a bit, then can rocket through the levels shown below, I would feel much better about this summer. 

Nasdaq
 Russell 2000
 SPX
Charts from TC2000, Courtesy of Worden Brothers, Inc.

I tried to do a video but the software on Chart.ly wasn't uploading it so I'll just post them here.  I did see some setups in my scans this weekend. This doesn't mean anything until they actually trigger and act well, but at least I am on alert for some potential movers this week.  All of my trading remains very short-term focused until I see smoother and better trading on the overall markets.   If we start to drift back, I will just go with TZA as a short play.  PLEASE CHECK EARNINGS DATES ON THESE AND ALL SETUPS!!!

HTH, CGI, CRAY, BV
TXRH, THLD, ET, CHSI
 SXCI, RST, XPO, KORS
ALLT, UA, RIC, LQDT
GNC, MGAM, DNKN, ZUMZ
Charts from TC2000, Courtesy of Worden Brothers, Inc.

Good luck next week. 

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