Trade Ideas: LCC, WNR, GM, RNO, WGO, SZE, GDX, CTC

Large caps are managing a solid comeback after some early morning jitters. Keep an eye on Richard Lehmans's Trend Channel Magic to get the direction of the markets. The Trade Ideas scan was a little slower, with 8 picks covering a time span of 5 minutes.

Of those 8 picks, only one - MV Goldminers (GDX) - broke the 20 appearance barrier at 29 hits for the day.

Bullish crosses for the 20-day/50-day MAs over the last 2 months occurred in General Motors (GM), Rio Narcea Gold (RNO), and Winnebago (WGO).

From the 1-year charts there is a bullish flag taking shape in US Airways (LCC); a 3-month cup-and-handle for General Motors (GM); a potential (and scrappy) bullish ascending triangle for Rio Narcea Gold (RNO) - resistance at $3 is key for this formation; solid trend action for Suez SA (SZE) and Compania de Telecomunicac (CTC); and a lengthy 9-month base with resistance at $42.50 for MV Gold Miners (GDX).



As a side point; the following 8 stocks all featured more than 20 times on today's scan:



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