My list of stocks with at least $1.50 average true range increased by 10% on Friday. My list of stocks that traded 2X normal volume on Friday doubled.
Could we be seeing signs of distribution?
Oil prices Fall and Economic Calendar is Busy this week
Crude oil prices fall, as the dollar rose and on expectations that OPEC production would remain high, stoking worries of oversupply despite declining U.S. rig operations.
The Organization of the Petroleum Exporting Countries (OPEC) pumped at a two-and-a-half year high of 31.22 million barrels of oil per day (bpd) in May, Reuters monthly survey shows.
The 12-member cartel meets in Vienna on Friday but is expected to maintain its current production policy, keeping the world oil market amply supplied for the foreseeable future.
Front-month Brent crude fell $1.00 a barrel to a low of $64.56 before recovering a little to around $64.65 by 1025 GMT. U.S. light crude was down 75 cents at $59.55 a barrel.
“OPEC continues to produce well above target, and also well above demand for its oil,” said Carsten Fritsch, senior oil analyst at Commerzbank in Frankfurt.
Day Trading Game Plan: The SPY
Well the SPY failed again at $212, so far this morning we remain inside the trading range that began in at the end of February. If oil prices fall, do you believe that will hurt the market or be an opportunity to buy?
Today is going to be an interesting day that should set the tone for the coming month. Two of the last 4 days had heavy volume on large red candlesticks (close below the open).
The weekly SPY trend is still higher (below), but, the market is showing sighs of distribution. I am not saying pull the plug on the longs, but the wind is changing.
Stocks to Trade |Monday June 1, 2015
- Charts are setting up for good tw0-way trading this week. Plenty of opportunities on both sides of the tape.
- For the long-term SPY trend to be broken we would need to close convincingly below $208
- A potential change of trend is the hardest tape to trade. Are we there yet? No but the signs are sure pointing in that direction.
- the test will come this week if strong stocks with a weak close (such as GS) do not find buyers…
Interesting Chart Lessons:
- APC looks good on the short-side if it can break the 3 week lows holding as support. Has excellent “room to go.”
Earnings in play today > 1M avg shares:
Bullish Ideas ATR/Volume/Price: YOKU, CTRP, HLF, SWKS, NFLX, TSLA, FEYE, GS
Bearish Ideas ATR/Volume/Price: gmcr, eog, apc, ual, wynn, unp
Weak Stock Weak Close: gmcr, qihu, ddd, fast,
Strong Stock Weak Close: YOKU, CVC, SUNE, ATVI,
Weak Stock Strong Close:
Strong Stock Strong Close: LLY
20 day Breakdown: unp, pot, bax, ba, cl, pg
20 Day Breakout: TMUS, AET, CIEN, SMH, EBAY, BSX
2x Normal Volume: BMY, ETFC, GT, CREE, ALTR, BSX, KORS, LLY, AET, POT, LO, DE, JCI
Watch List Longs: AET, ADM>53, UNH>122, COF, JPM, SBUX, ALTR, INTC, JNPR, EBAY, DOW
Watch List Short: kss, hal, cvx, cop, wmt, amgn<156, cost, luv, ntap, ual, wynn, emc<26, glw, low,
Inside days: feye, pep, apa, apc, dd, gild, tol, gpro, swn, swks, idti, ma, bidu, twtr, ddd, bbby, ctrp, tasr
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