I decided to preserve what little sanity I have left by waiting until the weekend to complete the move to my new web hosting firm. With any luck the site will be much faster next week.
There are a couple of economic reports to be aware of today, leading indicators at 10:00 and the Philly Fed at noon. Watch out for that lunch-time reversal!
I was impressed with the strength in the market yesterday but the market is still extended. Speaking as a swing trader, I wouldn’t be a seller here but I also wouldn’t be initiating longs. The S&P has been riding its upper Bollinger Band for about a week now — that’s a little late to put new money to work. I’m not saying that the market can’t keep melting up, just that, in my humble opinion, entires at this juncture have a poor risk/reward ratio.
Here’s the S&P chart. Note that it poked at the May high put couldn’t close above it. I wouldn’t be surprised to see a “flame out” today or tomorrow. What I mean by that is a strong move up and a hard reversal which would result in a shooting star or a bearish engulfing candlestick.
Here’s the Nasdaq which is also riding its upper Bollinger Band:
The (lack of) action in the semiconductors yesterday makes me raise an eyebrow. I like to see the semis participate when the Nasdaq runs.
Potential swing trades:
See one of the recent ‘Chart Reading‘ posts for some potential swing candidates.
Potential day trades:
(From Briefing.com)
Gapping Down
INSP -20% (announces loss of major customer; broker downgrade), AXCA -12% (stops development of Itopride), INCY -12% (announces convertible offering), INFA -4.9% (Goldman dwongrades to Sell), IVGN -4.5%, SLAB -4% (guides lower), QMAR -3.6% (extends yesterday’s late sell-off), USPI -3.7%, SWKS -3.3% (in sympathy with SLAB), NOVL -3.5% (receives Nasdaq delisting notice), XRTX -3.2% (reports AugQ, beats by $0.18, but guides NovQ below consensus), VRGY -2.8% (Agilent approves dividend of VRGY shares to Agilent shareholders), VRSN -2.6%, OSI -1.8% (Morgan Stanley downgrade), FD -1% (KeyBanc downgrade).
Gapping Up
MLHR +12.4% (reports AugQ, guides higher), MIVA +10.3% (guides higher), GYMB +6.8% (guides higher), FNET +5.5% (likely to receive operator license today – WR Hambrecht), PCLN +5% (guides higher), AAUK +4.8%, TZOO +4.3% (in sympathy with PCLN), SCUR +3.5%, CMTL +3.3% (reports JulQ), POZN +3.2% (receives payment from AZN), ORLY +3.2%, CSCO +1.2% (Piper upgrade), WEN +1.2% (Morgan Stanley upgrade), TWTC +1% (prices offering; also CIBC raises tgt to $21).
Disclaimer & How I use this list
