Basic Materials Show Strength | Stocks to Trade 10-7-15

basic materials show strengthToday will be a pivotal day for stock traders. SPY price action is trading higher than the 50sma (7:30 am) and just below the psychological $200 resistance.

The market is lining up for one side to blink; bears who are holding on to a momentum rally lasting too long or early bulls. I believe we are going to get a trend day today, the tension at these levels is palpable. Once we start to see intra day continuation patterns, should be a day to hold to the close.

Healthcare stocks are weak and basic materials show strength. Traders finally have sectors to give focus. The stock specific trading was making us work hard for the money. When stocks in the same industry have obvious order flow, it’s easier to trade with conviction.

The financials are in neutral. No other way to say it.

*Plenty of free trader training here if you are looking for a new edge.

Stock Market Today: Map of the S&P 500

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Basic Materials Show Strength

Day Trading Game Plan: The SPY ETF Outlook

SPY trading above the 50SMA and just below the $200 level at 7am. I believe we will test the upper level of this range today. A light volume pause again today will lead to a breakout before the end of the week with $206 the next level. A hard reversal off the resistance takes the SPY out of play again.

(click the chart for a full view)

Basic Materials Show Strength

Pete’s Notes:

  • Basic materials show great momentum the last ten days. Solid breakouts on above average volume.
  • Airlines should see selling with oil rising short-term.
  • MSFT introduces new notebook with claims it is 50% faster than the Mac Book.

Charts in Focus

Starwood Hotels & Resorts Worldwide Inc. | HOT

Clean bear flag in HOT. Perfect test of a declining 20ema

(click the chart for a full view)

Basic Materials Show Strength


Basic Materials Show Strength


Basic Materials Show Strength | Stocks to Trade 10-7-15

Earnings in play today > 1M avg shares: MON, STZ, ENZ,

Relative strength to yesterday’s negative change from the open: AMBA, URI, OKE, FSLR, STX, RRC, HES, LYB, APC, CLR, HP, SNDK, APA, NBL, EOG, FTI, VRX, WYNN, LVS, SLB

> 20sma, positive week and closed 2% higher from the open: URI, OKE, HES, LYB, CLR, HP, SNDK, APA, EOG, WYNN, LVS, SLB, HAL, COP

<20sma, negative last 5 days and closed 2% lower from the open: abc, biib, dltr, dg, ual, avgo

Bullish Ideas ATR/Volume/Price: LYB, NKE, TSO, NFX, CRM, ADBE, VLO, HFC, AMZN, ACN, GOOGL, MCD, UA, LB

Bearish Ideas ATR/Volume/Price: vrx, mnk, lulu, qrvo, xpo, gpro, wpz, amba, endp, myl, cf, ual, teva, etp, lng, mon, wmb, abbv, agn, dg, dltr, amgn, esrx<80, hot

Weak Stock Weak Close: wpz, endp, gps, myl, bax, ual, mdvn, bkd, pypl, see, dg, dltr,

Strong Stock Weak Close: JBL, WNR, PPL, SRPT, CUBE, TSO, EXPE, XEL, HFC, AMZN, CPB, UA, LGF, FB,

Weak Stock Strong Close: amba, beav, dyax, glng, ilmn, vrx

Strong Stock Strong Close: KN, MTDR, JKS, NVDA, LYB, Z, W, PDCE

20 day Breakdown: avgo, brcm, dg, dltr, swks

20 Day Breakout: CVE, MRO, PTEN, GE, RDC, DD, CVX, BP, CNQ, SPN, RAI, MU, HP, SYMC

2x Normal Volume: DD, SWKS, OLN, AVGO, SYMC, YUM, WYNN, JBL, CVE, VRX, FTI, ENDP, MNK, AGN, RDC, CPGX

Watch List Longs: GE, VLO, SBUX, MCD, KO, COST, MO, HD, TWC, JNPR, DOW, INTC, ADBE, MSFT, HD

Watch List Short: kss, abt, amgn, mrk, m, ual, vz

Inside days: wfc, yhoo, tsm, baba, ebay, ms, mdlz, sbux, hd, low, kr, so, adbe, bbt, thc, cl, khc, mmc, rio, crm, adi, ben, d, ups, ctsh, mchp, pcar, tel, dfs, lrcx, pnc, adp, lvlt, nsc, car, stt, trv, akam, hot

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