Oil Prices Rise | Stocks to Trade 10-12-15

The stock market news and recaps over the weekend focused on price action moving higher.

I think this is correct, but the market needs to pause. Stocks are overbought. A professional day trader must be aware of when to be long, and when to look for an entry that justifies the risk. I don’t see Friday’s one day pause as enough time to consolidate recent gains.

I would be surprised if we have a trend day higher today.

Oil prices rise this morning as signs that a reduction in active rigs will help improve prices further.

Oil Prices Rise | Stocks to Trade 10-12-15

Stock Market Today: Map of the S&P 500

(click the map for a full view)

Oil Prices Rise | Stocks to Trade 10-12-15

Day Trading Game Plan: The SPY ETF Outlook

The SPY breakout last week is impressive, especially with the light volume pause on Friday. The $205 area is the next target. I think the stock market needs another day or two to catch its breath. Looking deeper into many charts we are overbought or near resistance.

(click the chart for a full view)

Oil Prices Rise | Stocks to Trade 10-12-15

Pete’s Notes:

  • TSLA still a sell-short but it’s oversold. It may need a day or two before it resumes lower.
  • The financials continue to offer no clues.Bearish to neutral at best.
  • Gold is getting some attention.

Charts in Focus

Mallinckrodt Public Limited Company. MNK

The stock market is due for a pause which means stocks setting up as a short-sale are most likely to get bigger moves as the buyers step aside for a day. MNK is in a clean bear flag with a $10 profit target down to the $56 area. A day trader could game plan to trade the stock short the next couple of trading sessions.

(click the chart for a full view)

Oil Prices Rise | Stocks to Trade 10-12-15

Oil Prices Rise | Stocks to Trade 10-12-15

Oil Prices Rise | Stocks to Trade 10-12-15

Earnings in play today > 1M avg shares: INFY, PACB

Relative weakness to yesterday’s SPY positive change from the open:

> 20sma, positive week and closed 2% higher from the open: AAL, RIG, UAL, LUV, ADSK, ESV, YELP, SCTY, ZG

<20sma, negative last 5 days and closed 2% lower from the open: biib, wpz

Bullish Ideas ATR/Volume/Price: NFLX, LYB, NKE, NFX, EOG, EL, ADP, DLPH, ACN, AMT, UPS, MA, UA, HD, HFC, GOOGL, AMZN>539, CAM, PSX>84, RCL

Bearish Ideas ATR/Volume/Price: vrx, mnk, amba, wpz, feye, xon, mdvn, biib, yum, tsla, myl, swks, abc, lrcx, abbv, teva, cah, dltr, mjn, gs, dg, stt,

Weak Stock Weak Close: bac, pot, bkd, biib, teva, cfx, mnk, wpz, amtd, cmi, cme, gmc, crus, cyh, scmp, fosl

Strong Stock Weak Close: CVE, RDC, JNPR, KIM, LYB, NAT, INFY, PEG>42, DOW, NYCB, PSX>84,

Weak Stock Strong Close: mdvn, xon, rax, dltr, vrx, yum, gps, gpro

Strong Stock Strong Close: RIG, LUV, P, COST, Z, XRAY, CTXS, HA, ZG

20 day Breakdown: cme, dk, ea, scmp, tsla

20 Day Breakout: XRAY, ABY, ECL, KBR, Z, COST, IP, ADSK, LL, HPQ,

2x Normal Volume: BMR, GPS, LL, JOY, YUM, ADSK, IP, OLIN


Watch List Short: kss, mrk, m

Inside days: ge, twtr, ebay, kmi, wmb, wynn, lva, mcd, dd, celg, apa, lltc, sndk, aem, swks, crm, amgn, psx, thc, esrx, bby, abc, ctrp, amba, gmcr, hot, lbm hcn

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