A quick note today …
The broad markets responded well yesterday with all the indices pushing higher, and several of our favourite stocks responding well too. Just refer to recent videos in my Blog archive and I’ll have a new one tomorrow.
Oil stocks largely took the day off, with VLO notably failing to break out from its bull flag – no harm done because no breakout means no losses.
CRUS popped to the upside from its bull flag, and MNST looks like its consolidating from its post-earnings gap up, DIS is still looking good, F straining to a new recent high close, HD forming another bull flag, and PCYC consolidating.
Some of the financials are beginning to look more interesting. BAC responded well to its own doji reversal bar, while GS is consolidating nicely, C and JPM are motoring, and MS could go either way as it forms the right side of a head and shoulders pattern. Ideally I like to see very clear clustering where they all look similar with their OVIs and chart setups. Right now they’re still not quite all in sync, which has made that sector less compelling for me. The best trades in that particular sector have come when there is clear congruence between those stocks.
Finally, APOG was forming a railroad track and closed near scratch yesterday. The way to play this is to lower your stop to yesterday’s high. In the last four days this stock has formed two Dojis and a Railroad Track, all near its November/December highs, so there’s some uncertainty in the air for this stock which hopefully will resolve to the downside. In the meantime it’s all aobut reducing risk with this fast-moving stock.
More soon.
