Won’t it be nice to break out of this recent range and trade some volatility. If the MZZ chart is any indication, that’s coming soon. Earnings announcements should also help fuel some stock movers with liquidity.
The MZZ is building a tighter range on the daily chart. I was thinking it would break higher on it’s 4th attempt at the trendline resistance, but it quickly turned back down. I do know the tighter it gets, the more it will move when it breaks. If it heads to the upside, watch out for a typical slide in October for the market.
UARM, Under Armour, Inc., and HOG, Harley Davidson are a couple stock picks that have fluid pullbacks on their daily charts. I’ll be looking to go long them on a higher high.
Commodities were really looking weak today. Those charts have received some heavy damage. It’s much easier going with the trend. I won’t be trying to pick a bottom there.
I’m going to give this new category, “Stock Picks” a go. I’ll be placing my thoughts here on stocks, ETF’s, and whatever else strikes my fancy. I’ll approach the stock market for the next day’s trading with an open mind. It helps to have a few on your list that might form the patterns looked for when trading. So, here it goes.
MZZ is looking interesting nearing it’s downtrend line. Looks like it will break out on the 4th try. There is clear support for the ETF at the 70 dollar area.
PENN, Penn National Gaming, Inc., a stock pick that has been holding up through the slip in the Nasdaq. Watch for an entry here on a pullback, or break higher after a pause. Don’t get fooled into short selling this stock just because it looks extended. It’s strong for a reason.
SNDK, Sandisk, is similar to the stock pick MZZ above. It’s a short though. While MZZ is preparing to make it’s 4th attempt through resistance, SNDK has completed it. Watch for minor support near 54. It doesn’t look as if there are many traders or investors waiting to buy stock below that. Remember, wait for a trading setup.
Stay unbiased going into each trading day. Use your stock picks as a rough guide, but let the stock market fill in the map for you as trading progresses.