Trade Ideas: ETO, PRU, MRB, VIN, TRP, MFC, AMF, SLF

It was a losing start to the week as traders stepped in during afternoon hours to bid down the market. The weakness was reflected in my Trade Ideas scan as the 8 picks selected covered a time span of 10 minutes (looking further down my scan output the buying looked a lot weaker than this, an 8 pick list from 2:30 ET would have taken 60 minutes to generate).

Top of the pile was TransCanada Corp (TRP), a gas utility. It appeared on the scan 27 times over the course of the day. It was clear of second placed Sun Life Financial (SLF), in the insurance sector, which appeared 22 times.

Only Manulife (MFC) and Sun Life (SLF) completed bullish crosses between their 50-day/20-day MA over the last 2 months. Metallica (MRB) and Eaton Vance (ETO) are working off recent bearish crosses in these averages.

One-year charts of these stocks holds limited appeal. Eaton Vance (ETO) looks to be shaping a handle in the $26-28 range following confirmation of its May-June double bottom; watch for move to $32-33, stops on loss of $26. Metallica (MRB) has seen a relative drop in volatility after huge swings in the first half of the year - maybe it is ready to rock and roll again? Use the 200-day MA as your protective stop. Trend traders could look the two income funds: AMF and VIN, with their 5.00% and 6.50% yields respectively (run a stop for the former on loss of $3.55 and the latter at around $5.70).



If you would like to try a full version of the Trade-Ideas software, follow this link for a free 7-day trial.


Popular posts from this blog

S&P "Bull Trap"?

Image
I thought there was sufficient evidence to argue against a "bull trap" in the S&P, but it would appear the market wasn't interested in such thoughts and sellers were quick to reverse the initial push above 4,200.  Adding to the pain were new 'sell' triggers in MACD and On-Balance-Volume, although the former occurred above the 'bullish' zero line, making it a weak signal. Selling volume ranked as distribution as selling momentum picked up speed.  The index is also underperforming relative to the Russell 2000. 
Read more

"Black Candlesticks" are a concern for the S&P and Nasdaq

Image
A bright start for bulls on the back of positive $NVDA earnings wasn't enough to generate a day of meaningful gains.  However, it did help stall the losses of the last couple of days. The Nasdaq was the biggest beneficiary of today's action, but not enough to see an end-of-day finish that cleared last week's swing high, nor delivery of a large white candlestick, despite the morning breakout gap.  Technicals are net bullish and relative performance against the S&P has become consistently stronger since the start of May.  While today's candlestick I would view as typically 'bearish', today's volume ranked as confirmed accumulation (bullish). Overall, I would be looking for higher prices from here. 
Read more

Round 2 for the bearish "black" candlestick in S&P and Nasdaq

Image
The Nasdaq started brightly but ended up closing below its open price, but above yesterday's close. The S&P did something similar, although the intraday range is narrower. These two setups are somewhat complicated by the new 'buy' triggers in On-Balance-Volume for both the Nasdaq and S&P. And the new MACD trigger 'buy' for the S&P. Price action is key, so I would expect the candlestick to trump the technical picture; watch for lower prices tomorrow.
Read more

Archive

Show more