Some basic fact about the major indices:
- On the weekly charts, the up trend remain not only intact, but it is unchallenged.
- The up side momentum virtually diminished for all 3 indices, which may forecast the ending of straight-up movement and the arrival of side-way stage.
- Bearish divergences exist for several technical indicators for all the indices on the week charts.
- NASDAQ is the only winner of the major indices. If it continues its winning way next week, it may pull the market higher, but if it reverses in a hard way, with both SP500 and DOW already show some weakness, that would wake up a lot of bears.
My overall strategy for next week:
- long on the pullbacks of strong up-trending stocks, but don't buy the break-out.
- too early to short any stocks that are still making new highs so don't do it!!
- consider small speculative short positions on stocks approaching their recent high, but be ready to stop out the they have strong break-outs.
- except the small speculative short positions, be nimble to take profits, and be very cautious about the overnight positions.
Weekly Trading Calls:
1. AAPL: S2 on top if it spikes towards 93 with a stop just above; L2 only when it spikes towards 86.5 use EMA50=86.2 as stop references. Try not trade the mid range.
2. ADI: L1 on pullbacks, entry zone 36-36.6, stop just below 36, IT=38-39.5.
3. ADSK: Speculative S2 on top if it approaches 43/45, with a stop just above 45.2, IT=41, but it if it breaks through 40, it would be big.
4. AMD: remains extremely oversold, and now backs to the level of 2 years ago when the rally started. Weekly candles suggest bearishness may be topped out, but many other indicators point to further momentum decline. I see a fundamental support zone between 10.5 to 13.6, and IT zone between 17-18.5 for short-term rally if that occurs, need to be patient here for a possible SW-long entry.
5. AMZN: speculative SW-S2 on top if it approaches 42, stop just above 43.3, IT=48.
6. ANF: SW-S3 on top, entry zone 80.8-83, stop just above 83, IT=EMA50=77.6.
7. ANN: SW-S3 on top, entry zone 35.7-36, stop just above 36.3, IT=33.5.
8. BIDU: Speculative S3 on top when it spikes towards 112/115, use very tight stops. EMA50=114.8.
9. BOBJ: Speculative SW-S3 on top when it spikes towards 38, or S1 when it breaks 36, IT=33.5. EMA50=38.1, EMA10=38.4.
10. BRCM: speculative SW-S3 on top around 37, stop just above 37.5, IT=MA50=33.1. Very good RSW/RWD ratio, but probability is not very good.
11. CRM: speculative SW-S3 on top if it approaches 50, stop just above 50.5, IT=44.
12. DVN: SW-L2 on bottom if it spikes towards 65 with a stop just below, IT=68.5.
13. ENER: SW-S3 on top if it spikes towards 33, use EMA50=33.6 as stop reference, IT=30.
14. ERTS: CTT between 31.5 (MA50) and 54.5 use very tight stops, don't trade the mid range.
15. ESRX: speculative SW-S3 on top, entry range 78.5-79.5, stop just above 80, IT=75.
16. FFIV: speculative SW-S3 on top, entry range=78.5-80.5, stop just above 81, IT=EMA50=73.7.
17. FNM: CTT-S2 on top, entry zone=59-60, stop just above 60.3, IT=56.
18. MDT: S1 on top if it spikes towards 52, with stop zone=52.6-53(EMA50), IT=49.
19. MRVL: will report Q4 on Monday AMC, watch key resistance zone 21-22, and support around 18, consider a long position if there is a solid break above 22 after the report, next resistance zone=26-27.
20. NTAP: it may break-out if NASDAQ breaks out next week. May consider a speculative long if it spikes towards 39.5, IDS just below 39 and CS=39.4, IT=41.5?
21. NTES: will report Q4 on Monday AMC, keep eyes on key support around 19 and resistance around 23.
22. NUE: CTT between 61 and 66/67 use tight stops, bias slightly bearish, don't trade the mid range.
23. NVDA: SW-S2 on top, entry zone 33-34, stop just above 35, IT=30, EMA50=33.5.
24. SNDK: looks like testing 1 yr low at 37.34 is inevitable, triple MACD histogram divergence on both daily and weekly charts, but is it time to catch this falling knife?
25. SONS: will report Q4 on Feb. 28 AMC, keep eye on the key support around 7 and resistance near 8. I feel that the current share price already reflect a stellar report, therefore I may consider a small speculative short position just below 7.8 going into the earning.....
26. WFMI: speculative SW-S3 on top if it spikes towards 52 with a stop just above 52.5, IT=47. I feel that it has a good chance to fill the gap.
27. WLT: SW-S2 on top if it spikes towards EMA50=25.8 with a stop just above 26, IT=22.
28. X: DT-L2 on bottom if it spikes towards support zone 87-90, RSK/RWD not attractive.
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