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I want to wish everyone out there a Happy Easter and Passover and I hope you are enjoying the weekend with family and friends. As a result of the holidays I am doing a regular post tonight (with some set ups) for the week ahead.
As you know by now, the S&P futures reacted to the downside on Friday, as the equity markets were closed. The unemployment figures rose a bit and the initial knee jerk in an illiquid market, (futures), was to sell. So as it stands now, we will probably see a tough open in the morning.
The support level to watch for the S&P (SPX) is the 1370 level which is also the 50 day simple moving average on the daily chart. If that is breached, than we will look for the 1340-1350 level for next support.
My advice for the open is not to panic. I understand that everyone has a different risk tolerance and some of you may sell some names at or before the open. Do what you need to do. I will probably wait and let the dust settle for a bit, but if I make a move early, I will let you know on the chat room and my email.
Here are some longs and shorts that I am looking at this week, but I will not be making any purchases in the early going tomorrow or at all for that matter. They are just setups for the radar at this point. Most of the stocks on our list I will want to buy more of, not panic out of, unless things really get ugly. The market will be our guide though. So far buying the dip in this tape has been the way to go. Until that approach changes, there is no real reason to panic. It just may take a day or two for buyers to show up. Stay sharp and have some dry powder
Longs
LNG over 17.05
RHT over 62.30
NCR over 22.10
ACHN (bonus idea) acting better and broke out of its downtrend line on daily chart on Friday. Yes I know, the stock we love to hate.
Shorts (no levels yet, I want to see how they open)
CLF
CBI
JBL
I will see you guys early on the chat room tomorrow.
Joe