{+++} The market is always interesting becauae it changes daily. We, as traders also need to react to these changes. Right now, the market is in a massive uptrend, I don’t care what these bears say. They missed the move and their pissed and jealous. This leads to performance anxiety and chasing. This is good for the bulls. The bears has their shot Friday to crush things and they couldn’t.
I am not a perma bull or bear, but I like to watch and trade momentum. Right now we are in sort of a “pull back big or do we want to rally higher” mode. I think we go higher. The S&P held support last week and that was a decent first test. We’ll’ see howwe do this week. Here are some long setups that you need to watch.
Biotech (IBB) exploded and broke out Friday which could be a signal of a blow off top, so we need to be careful in that sector, but until that sector shows signs of breaking down, I’m still bullish. The move in this sector does need a pullback, so lets be careful.
With that said, I only have three new names this week, two of which are biotech stocks. Here you go.
GWRE– This stock (see rectangle) has been consolidating for almost two months and may be ready for a big move higher. Buy the breakout at the 39 area.
KERX- Remember this one? We made big money maybe six month back. It broke out in late January and has been basically consolidating ever since. This one could be ready for another leg higher.
PCYC– Ok, we had this one on the list a while back. I talked about the rule of 91.50 on this one. Meaning that when a stock tags that level for the first time it usually goes to 110. Please not that this can happen over time and I think this could get hot again and get to that level. Over time.
Have a great night and please try to get on the chat room if you can. I’m doing a lot more there and you may see a benefit.