Tuesday, January 1, 2013

Thirteen Top Charts for the Start of 2013

Well, it looks like we got a partial solution to the big "fiscal cliff" from Congress, so tomorrow's first day of trading for the new year should be interesting.  From what I've read, all Congress really has done so far is kick the can down the road until the spring, which is not surprising at all and is something I predicted on Twitter and in Monday's write-up.  It would be nice to have a final solution that the market could digest one way or the other just to get rid of some of the uncertainty, but that's probably not going to happen.  

We did see some major strength on Monday to end 2012, and now it is possible that with the cliff being postponed at least for a little bit, the market continues higher into the new year.   It's not a given however in my opinion.  We will likely see a gap one way or the other on Wednesday.  I just hope it's not a major one to the upside, as that seems to be a perfect opportunity for traders to sell the news.  

Nasdaq 2012

Based on Monday's action and the individual charts I see in my scans, I go into the new year with a cautiously bullish outlook.  Again, I can't get rid of the feeling that a big gap up tomorrow will be faded and make entering new positions difficult to start the year, but I am open for anything.  Maybe a gap up and a fade is too obvious and instead we just get a big melt-up.  Either way, to get ready for that new year of trading, I compiled a list of thirteen interesting charts for 2013.

What I tried to do when picking the charts below was look for setups that would be potentially longer-term plays.  I am typically a very short-term trader, but as a new year starts, it's nice to have some names that are setting up for moves that might be able to be held for a while.  The stocks below are a mix of different sectors.  Some are bottoming patterns while others are showing very high relative strength and could be considered current leaders.  Some have very strong fundamentals to boot.  I tried to get a mix of names that have potential going forward this year - perhaps a list that you can look back on 364 days from now and say, "hey, that was a big winner".  These aren't predictions, just names that look promising.  Obviously, risk-management through the use of stops is always important even though these are meant to be longer-term plays.  

ANN
 ANR
 BLOX
EGHT
 ELLI
 FB
 GRPN
 LULU
 MXWL
 PHM
 RPRX
 SRPT
 VLO
All Charts from TC2000, Courtesy of Worden Brothers, Inc.

I still have a list of shorter-term plays for tomorrow and the rest of this week - names like HL, GNRC, GMCR, ANGI, GY, JIVE, HALO, NXST.   Those are still names that might be in play soon depending on what the market does tomorrow.   Good luck for the rest of this week and the rest of this year as well.  Hopefully, we'll get a smoother, more predictable market that is easier to play.  

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