Stocks to Trade 11-17-15 | Tuesday Game Plan

A bullish engulfing candlestick on the SPY is impressive. Volume was decent, not great. The 20 ema resistance is @ $206. Trading from the long side – buying– is the correct trading game plan. However, be careful with your longs if the SPY trades below the open. Should this happen I would not be shocked if the stock market accelerates lower.

Yesterday was an over-sold bounce and it does not negate the fact that there is significant overhead resistance.

The upside potential on many longs is still limited. Unless traders get an unexpected rate hike, I see the SPY remaining in this trading range through the end of the year.

Stock Market Today: Map of the S&P 500

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Stocks to Trade 11-17-15 | Tuesday Game Plan

Day Trading Game Plan: The SPY ETF Outlook

SPY reversal is impressive but it’s only a one day wonder. Day traders need to be aware the SPY needs to stay above yesterday’s high to maintain conviction on the long side.

(click the chart for a full view)

Stocks to Trade 11-17-15 | Tuesday Game Plan

Pete’s Notes:

  • QCOM and VMW continue to coil. Look for a trend day.

Charts in Focus

URBN Urban Outfitters Inc.

We often discuss a price action scenario known as exhaustion. The pattern is also known as capitulation or a “clean-up print.” Exhaustion occurs after a significant, parabolic price action higher or lower with a large spike in volume. The large spike in volume represents the “clean-up” of the large order that created the momentum move.

It is not a signal to exit or reverse your position but an alert to tighten up a trailing stop on a winning trade.

(click the chart for a full view)

Stocks to Trade 11-17-15

Stocks to Trade 11-17-15 | Tuesday Game Plan

Stocks to Trade 11-17-15 | Tuesday Game Plan

Relative weakness yesterday compared to the SPY positive change from the open: ea, hot, lbtya, urbn

> 20sma, positive week and closed 2% higher from the open: RRC, LNG, AR, JD, NFLX, NFX, VIAB, TOL, ACN, SLB, ILMN, MYL, CAM, BIDU, LRCX, EMR, CBS, VRTX

<20sma, negative last 5 days and closed 2% lower from the open: ea, hot, lbtya, urbn

Bullish Ideas ATR/Volume/Price: WTW, CTRP, BIDU, AMZN, LRCX, GOOGL, VRTX, VLO, PSX, TSO, PRU, CAH, DIS, FB, TAP, MCD, CAM, COST, ADBE

Bearish Ideas ATR/Volume/Price: vrx, skx, scty. feye, m, wdc, fit, car, jwn, endp, akam, mbly, lulu, fl, nxpi, hcn, gmcr, cern, stx, ibm, thc, unp, cvs, dg, mdvn, bhi, hca, aet, wba, yum, kss, tgt, de

Weak Stock Weak Close: lbtya, urbn

Strong Stock Weak Close:

Weak Stock Strong Close: csco, kmi, wmt, bby, tjx, celg, apc, wmb, jwn, wba, scty, rost, gpro, fl, bhi, etp, kss, stx, wdc, wynn, tsla, hcp, aet, oke

Strong Stock Strong Close: NFLX, DIS, BIDU, ACN, PSX, JBL, CAM

20 day Breakdown: ea, expe, hlt, infy, m, urbn

20 Day Breakout: AZN, ILMN, MYL, YELP

2x Normal Volume: HOT, MAR, URBN, SYF, JWN, EXPE, TJX, FL, JD

Watch List Longs: VLO, PRU, DIS, TRV, JPM, MCD, GE, COST, KLAC, DD, EBAY, MSFT, LUV, DOW, ADBE

Watch List Short: adm, cvs, bby, bhi, axp, aet, kss, tgt, wmt, m, akam, qcom, ntap, csco

Inside days: orcl, kr, wfc, vrx, nvda, abbv, fit, jnpr, rost, gpro, adm, nke, kss, dhi, pm, ua, wdc, yum, de, wm, ntap, cern, hcn, rax, cf, amtd, pnc, tso

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