Monday, December 2, 2013

Some Setups for the Week Ahead (Better Late Than Never...)

Hi traders.  Had family committments this weekend so I apologize for no video.  I'm sharing some setups for the rest of this week now, however.  In my opinion, it remains a tricky and tough market as some stocks work very well but others that you would think would work do nothing but screw with you.  I've been shorting and going long the past few weeks and have had winners on both sides.  Those winners haven't been big enough however to cancel out my losses and my account has gone sideways now for about a month.  It's frustrating for sure, but it happens.  Don't get too upset if you are seeing the same thing happen to you.   It is very much a stock picker's market.

Going forward, I am sticking by the longer-term outlook I have discussed for the past few weeks that I think we are topping while we move higher (if that makes any sense).  I expect to see a significant pullback/correction at some point but I would be surprised if that correction came before the new year starts.   There are a lot of sentiment indicators that are reaching extremes and the price action in many names points to a market that is weaker than it appears to be, but tops take time and we are entering a traditionally bullish time of year.  While I think January 2 will be a very interesting session, I fully expect the market to grind its way higher over the next month so perhaps institutions can continue to distribute stock as the market moves up.

In the meantime, you have to trade accordingly.   I have shorted here and there with mixed results but I suspect that most shorts will be difficult if you have anything more than a day or two time frame.  If you get 5-7% profits on a short, it's awesome in a market like this.  On the long side, I am not swing trading too much at all and settling for profits much quicker and with lower % targets. 

I did see some decent setups in my scans tonight and throughout the day most of my watchlist was up even though the market was lower (particularly the small caps).  This was in direct contrast to how the market acted much of the past few weeks, with the market showing gains overall but many individual stocks trading lower intraday.  Perhaps we are due for a bounce over the next few days because many stocks acted well during today's session.  We'll see I guess.

Hope you have some luck with the setups below.  Comments are made on each chart. As always, if you have any questions or comments about those setups or my trading, feel free to email or send me a tweet.
AFOP
 BITA
 BWLD
 CSIQ
 FLDM
 HLF
 PCRX
 PVA
 SGEN
 SPLK
 SUNE
 WAGE
All Charts from TC2000, Courtesy of Worden Brothers, Inc.

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