$ES / $SPY
Friday we triggered a valid long when we broke over the 5/14 highs. Technical target for the setup is back to all-time highs. Problem is almost as soon as we triggered we sold off and ended up putting in a pretty ugly daily candle. If we lose $4029 prior to heading back to highs, things could get a bit ugly. Notice how price is just pinched between the 20d and the 50d. It actually wouldn’t surprise me if we spend a bit more time moving sideways as price coils tightly before making its next move.
$NQ / $QQQ
Notice how tech has a similar setup as the S&P but in a MUCH more bearish way. Technically it triggered an attempt to reverse and head back higher, but it ran smack into the underside of the 20d and 50d and rejected. If this were to come back and lose $12915, it very well could send it tumbling down to the 200d and possibly even lower. It’s no secret that tech has been lagging for quite a while. It really does need to get some constructive price action soon in order to start looking healthy again.
Boy oh boy has this really started to fall apart. If you were to look back over the last few weeks of Sunday Preps, you would see all the warning signs were there. This isn’t meant to brag, but merely to point out that none of this is done in hindsight. If we head down to around $28k and can’t hold, we very well may be in for a $20k test.
Strong Stocks Looking for Continuation
Will be interested in scooping any flush down to the 50d with risk below last Wednesday’s lows. Notice buyers stepped in down there on both Wednesday and Thursday of last week.
Yes, that’s right, WDC is back on the list again this week. Will be ready to scoop any flush to the 20d/monthly pivot around $70.50.
Hoping for a flush towards $50 for scoops. If it instead wants to push higher over $58 it will be on my list for names I would be willing to join trend on dips that start to hold.
Oversold Reversion Setups
Nothing really has my attention here.
Weak Stocks Looking for Continuation
This name had a big move up last week right into the underside of the 20d/50d/200d. Friday it gapped up and just sold straight off and closed under all 3 moving averages. Will watch to fade any pop back to Friday’s highs or if it wants to just sell off then I will look to join trend and short pops. This could easily want to come back down to last week’s lows and possibly even lower.
ETSY has been trying to reclaim that bigger picture trendline that it lost a few weeks ago and really is struggling here. Friday’s close below the 200d makes me think it wants lower. Will be watching to fade a pop back into the 200d or possibly join trend on it if it starts to sell off. If it loses last week’s lows it can get REALLY ugly.
Some other names with similar looks that I will also have on watch are $SQ $PINS and $PDD
Overbought Reversion Setups
This name was on this same scan 2 weeks ago and as you can see it gave a nice reversion trade. But since then it has reset and found buyers again as it resumed its uptrend. I don’t quite think it’s overbought enough yet, but if it continues to push higher towards $94 without a real pullback, I will then be getting pretty interested in watching for it to show signs that it may be ready to fade.
VIrgin Galactic was strong Friday heading into the weekend catalyst. Here is the link: https://www.cnn.com/2021/05/22/tech/virgin-galactic-spaceflight/index.html
I am anticipating this being a sell-the-news trade on Monday. Hoping it gaps up and brings in chasers. Will be watching for an early push to stuff. If they just start selling it off hard in the premarket I will be looking for pops to hit and join trend.
Here’s this week’s lineup of notable companies reporting their numbers.
If this gaps down on the numbers into that $418-$420 area I like it for a possible bounce. The $388 area is the dream level, but highly doubt it gets that low on the numbers. If it were to gap up off a beat then I may actually look to buy flushes on the name since the daily chart is so bullish. We’ll see what opportunity it gives once the numbers are released.
Retail was looking good heading into last week, but there was a serious lack of followthrough on names. Nordstrom is actually looking pretty vulnerable especially if it were to lose that $33 level. If it were to gap under there off the numbers the first spot I might be interested in scooping a long would be the stacked pivot area (monthly/quarterly/annual) right around $29. If it were to gap up and spike off the numbers I think the first attempt at breaking through that $46 area would be rejected and offer a nice short opportunity.
Would look to scoop a big bag of Dicks off the weekly 20sma which lines up very nicely with the monthly pivot around $77.
I absolutely love this chart if it can break over that $239 level and earnings might be just the catalyst to get that going. If it can get over that level, I will be looking to start a swing position in my long term account as well as look for dips to buy for a day trade. If they miss estimates and gap down, I really like the $191 area for a possible scoop.
The weekly chart really makes things look much more obvious for the levels of interest.
I like a flush on DELL towards $90 for a possible long opp.
Would be willing to fade a hard spike into $73 or scoop an emotional flush down into $55ish.
Not sure Hibbett can get down to that $67 level off an earnings miss, but that would really be the first spot where I might want to step in and scoop some for a bounce.
Obviously a lot more names than just these are reporting, but most have charts that are just so blahhh. We’ll see how these pan out. I’m sure there will be no shortage of opportunities throughout the week. Cheers.