The stock market is setting up a choppy week.
Leading stocks are near resistance and the $SPY produced the first inside candlestick in seven weeks. Volume was tough to gauge last week because of the holiday shortened trading but the market was due for this type of pause. The bulls are still in charge but the momentum has less room to run, this means adding to day trades is the wrong strategy.
Cash flow mindset until we clear new levels.
Learning to read the tape means you must go deeper than simply identifying to be bullish or bearish. Good long ideas in many stocks are looking at 1-1 risk/reward. Break-even trades make you a break-even trader.
Breakouts with room to go are the best trades on the board right now.
If you need some help leave a comment below…
Pete’s Day Trading Notes:
- Less stocks bullish, more stocks near resistance, equals a trading range coming.
- $AMZN newly confirmed up trend, needs to get over $585 for the next buy point.
- $CVX bullish engulfing candle should lead to a test of $100 this week.
Stocks Are Overbought At Levels Not Seen Since 2013
After a strong bullish run off of February lows, the S&P 500 finished off last week with its first three consecutive down days in over a month. According to Bespoke, the pullback could be a response to the market recently hitting its most overbought level since 2013.
“Today’s weakness in equities is sure to put some downward pressure on the percentage of overbought stocks,” Bespoke wrote on March 23. “But in the wake of the big rally over the last six weeks, the net percentage of overbought (1+ standard deviation above 50-DMA) stocks in the S&P 500 surged above 75% earlier this week; the highest in over three years.”
Continue reading on benzinga.com
▶ Market Snapshot: U.S. stocks look to rebuild after snapping five-week win streak: U.S. stock futures… https://t.co/WWroHsIlib MARKETWATCH
— FinanzLinksUSA (@FinanzLinksCom) March 28, 2016
Stock Market Today: Map of the S&P 500
(click the map for a full view)
SPY ETF Holds 200 SMA Support Bullish Streak Ends 3-28-16
Stocks Fight Back After Early Losses; GameStop Down After Hours
Stocks erased early losses and ended mixed Thursday, ending a five-week winning streak in light pre-holiday trading.
The Nasdaq and the Dow Jones industrial average each edged up 0.1%, while the S&P 500 ended a tad lower. Major averages fell as much as 0.7% in early trading. Volume was lower in the stock market today, slipping 4% on the NYSE and 9% on the Nasdaq compared to Wednesday, according to preliminary data.
After the close, GameStop (GME) fell sharply following its earnings report for the fiscal fourth quarter that ended in January.
Machinery and office supply stocks were among the best performers in the regular session.
Caterpillar (CAT) leading the Dow with a 2% gain.
Meanwhile, office supply stock Staples (SPLS) was among the bright spots in the S&P 500, jumping 7% after a judge disapproved of a Federal Trade Commission ruling that barred it from taking over rival Office Depot (ODP). Office Depot jumped 9%.
Continue reading on investors.com
Chart Reading the SPY ETF
$SPY held 200 sma support but there are bigger clues on the weekly chart. The five week run of well-bid price action came to an end and many stocks are near resistance. The stock market is due for a pause.
(click the chart for a full view)
Technical Analysis | Charts of Interest
$WMB on finviz.com
Fernwood Investment Management LLC Lowers Stake in Williams Companies Inc (WMB)
Fernwood Investment Management LLC lowered its stake in Williams Companies Inc (NYSE:WMB) by 3.1% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 40,285 shares of the company’s stock after selling 1,300 shares during the period.
Fernwood Investment Management LLC’s holdings in Williams Companies were worth $1,035,000 as of its most recent filing with the SEC
$WMB has short-term support in the $15 area with a profit target of $10.22 on a short-sale.
(click the chart for a full view)
Stocks to Trade 3-28-16
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: MDVN, ACN, X, IONS, AMZN, TSLA, CTSH, TSO, WYNN, IBM, VLO
Negative last 20 and 5 trading days | closed 2% lower from the open: aal, wmb
Quarterly Order Flow:
Bullish Stocks to Trade: ACN, AMZN, CAT, APA, AEM, WYNN, IBM, CVX, NEE, BIDU, FB, HD, LVS, MMM, CB, FDX, AVGO, LOW, PSX, KMB, DG, MCD, HON, BABA, UNH,
Bearish Stocks to Trade: vrx, cern, lnkd, endp, fl, lly, esrx, teva <54, vrtx
2x Normal Volume: ACN, SWHC
Inside days: tmus, jnj, nvda, v, jblu, mo, syy, cnc, mat, ipg, yum, dg, agn, tsn, fl, holx, d, cms, adt, tap, dks