Wednesday Market Wrap- 3 New Set Ups

{+++} Today’s session saw an extension of yesterday’s buying as the S&P 500 managed to erase the remainder of its losses from Monday. The rally occurred with six of 10 sectors adding in excess of 1.0%. Cyclical stocks led the way with industrials and materials exhibiting relative strength from the start of the session.

Today’s economic data provided some support as January pending home sales rose 4.5%, which was ahead of the 1.0% increase that had been expected.

I took some profit on SRPT and PANW today. I may sell the rest of PANW tomorrow as earnings are after the close tomorrow and I don’t want the risk. Please see the adjusted stops on both tonight.

So far the market is trying to stage a nice comeback. The one thing that makes me a little skeptical is that we sold off on big volume but rallied back on light volume. It could mean nothing, but I would rather have seen better volume on the bounce the last two days.

Some stocks look great, so here are some setups for you to watch tomorrow.

EVR– This stock has barely traded below the 20 day moving average in a long time.  Like many stocks it’s slightly extended, but has been consolidating for a week or two and the volume is good. I would play this one as a breakout play at the around the 40.82 area.


MDCO– had a  good earnings report recently and is coiling beautifully along the 20 day moving average.  I will buy the 31.75 level.


PCYC– has been a big winner so far this year. The stock is digesting a recent 15 point move which is still very bullish. I would buy the breakout area at the 91.60 level.


Hope you guys had a good day, I’ll see you in the chat room in the morning.




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