Wednesday, July 17, 2013

So Far, So Good This Week

If you read this weekend's summary and outlook, you may remember me hoping for a certain scenario to play out this week....

"Good luck going forward - an ideal week of trading would see the market trade calmly throughout the week and move sideways to just slightly lower on the indexes while individual stocks still made nice moves each day underneath the surface."

So far, that's has pretty much been what we've seen this week.   The indices have gone nowhere to slightly higher depending upon which one you are looking at, but underneath the surface, there continue to be a ton of stocks moving intraday and many more consolidating nicely to form new potential setups.  Going into the summer, I didn't expect much at all from this market, but recently this has been about as good a market as you could ask for.  Hopefully that doesn't mean we are about to hit a rough patch.

The Nasdaq and Russell 2000 remain extended and could use more rest, but the S&P has consolidated nicely and has yet to break to new highs for the year.  If that happens in the next few days or sometime next week, we could really see another major push higher, which is amazing.  

 S&P 500

I'm also amazed at how many quality setups are showing up in my scans each night even with the market extended.  Tonight was no different.   Biotechs broke out strong a few days ago, but have consolidated well for the past two days and may be setting up for another pop soon.   This group could use a few more days of rest however to make the patterns better.

PCYC, XNPT, MNKD, ACAD


There are also some high quality, IBD-type stocks with great fundamentals that are not extended and in some cases not even near new highs.   These names are of great interest if they trigger and the market continues to cooperate.   I took an anticipatory position in one of these names today.

LNKD, PRLB, NUS, REGI

Some lower-priced stocks with decent to good fundamentals in most cases are also of interest here.  These setups look very good and have acted well this week, consolidating nicely for a few days.
 
ZLC, TA, MTG, PERI

Although it might not be the ideal place to focus right now, there are even several lower-priced names that are beaten down and could be putting in longer-term bottoms here.   These names are more risky however and it might be smarter to stay focused on names with stronger technicals and fundamentals.  

MCP, CIMT, SKUL, RKUS
All Charts from TC2000, Courtesy of Worden Brothers, Inc.

Hope you have find some names above that interest you and you have some luck with them.   Going forward, earnings reports may make the indexes a little volatile from day to day, but as long as individual stocks are moving, I won't complain.  Good luck the rest of the week. 

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