Monday, August 13, 2012

Top Ten Setups (Plus a Bonus) for the Rest of the Week

We saw another good day today on Wall Street in that the market bounced back strongly from early selling and kept the bullish flag pattern in tact on the S&P and Nasdaq.  The Russell sold off harder than the others but also bounced back very strongly, holding its nine and twenty day moving averages.  This past week has certainly been different from what we've seen for most of this summer when any strength lasting a week or so was met with selling that lasted about the same length of time.  Hopefully that's a good sign - hopefully this is a healthy pause before higher prices ensue. 

My only concern here is that it is very difficult to have any strong convictions in a market as thin as this one.   Volume was putrid today (which is fine for a consolidation day) but if you see the market breakout of this little range on very low volume as well, you have to pause a bit.  It is just hard to read things without strong volume.  Many times over the past week or so I have looked at my quote screen in the middle of the day and wondered if the market was closed because nothing was happening.  I wonder if this rest is what it should be (a lack of sellers) or simply a lack of traders period in these summer doldrums.  

Either way, I have to go with what the indexes are showing me and right now things look quite bullish.  Below are ten setups (plus one more bonus) that I will be watching this week.   Explanations are on the charts.  
Charts from TC2000, Courtesy of Worden Brothers, Inc.

Good luck the rest of the week.  

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