A few of the popular high-beta stocks were showing signs of cracking the last ten days. Price action and volume weren’t in sync. Well, they fell through the ice yesterday, in a big way.
Monster trading volume across the board was a short-sellers paradise. So what is the trade for today. Many of the stocks that got hit with selling this week are coming into support so you need to take a good look at reward potential, especially on a lower open. You don’t want to risk $2, to make $2.25.
Good chance of sideways price action today after the opening hour.
Stock Market Today: Map of the S&P 500
(click the map for a full view)
Day Trading Game Plan: The SPY ETF Chart
FOMC reaction or not, that was real selling yesterday. Over 350 million shares the last 2 days. As of 7:30 am we are looking at a lower open. Keep an eye on the $TICK and $TRIN readings for clues. If we push lower but the $TICK does not reach at least -700, the selling may be exhausted.
(click the chart for a full view)
Stocks to Trade | Friday August 21, 2015
Pete’s Notes:
- A lower open should be a solid buy in quite a few stocks today.
- Market internals will be a key to gauge today’s trading.
Charts in Focus
ATVI hit new 52 week highs this week and has an orderly pull-back to the 20ema and a level that was support (the $28 area). A lower open today would be a solid buying idea. Keep an eye on the other stocks in the industry such as GME and TTWO for confirmation.
(click the chart for a full view)
Earnings in play today > 1M avg shares: DE, FL
Bullish Ideas ATR/Volume/Price: POST, SKX, W, HLF, AAP, HD, ALK, SYK, LMT, SRPT, LLY>89, VLO, DHI
Bearish Ideas ATR/Volume/Price: yelp, viab, gmcr, qrvo, juno, bidu, myl, swks, uri, baba, wpz, dvn, isis, wynn, kss, rrc, cvx, cof, paa, lyb, bhi, hot, lng, mar, unp, adi, mmm, sndk, utx, cam, etp
Weak Stock Weak Close: viab, twtr, swks, twx, baba, wpz, dvn, isis, bx, scty, wynn, cbs, ben, fox, clr, bhi, avgo, swft, lng, adi, nrg, sndk, jci, ca, cam, txn, se, trn, etp
Strong Stock Weak Close: BXLT, MAS, NVDA, LOW, TMUS, ATVI, HOLX, TOL, HD, TSO, ARMK, PGR
Weak Stock Strong Close: gmcr, sfm, vtr
Strong Stock Strong Close:
20 day Breakdown: bac, mu, fb, dis, rad, baba, ms, twx, txn, cbs, bx, unp, sndk, disca, crm, ba, bbt, bhi, adi, lng, swft, cnq, dvn, ea, ccl, ctrp, wetf, cien, acn, mur
20 Day Breakout: ABX, AU, AUY,
2x Normal Volume: DIS, MRK, NTAP, TWX, AEO, LLY, CBS, BX, MBLY, SNDK, YUM, CRM, KKR, BA, ADI, SWFT, KSS, AEM, BEN, CMA
Watch List Longs: TJX, HD, MCD, TOL, LEN
Watch List Short: cop, kss, cvx, bhi, bmy, hal, all, xom, wmt, bby, wynn, dow, hpq, dd, sndk, qcom, klac, txn, intc, lltc,
Inside days: tgt, rax, eog, wmt, dhi, paa, kors, ally, rrc, altr, bxlt
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