This past week was quite an indecisive one for the market where we are seeing some mixed signals. On the positive side, we saw a 3/8/20 cross up on most of the major indices, which generally is bullish in the short term. On the not so positive side, we saw a number of very indecisive daily candles this week on the major indices. Looking at the SPY for example, 4 out of 5 candles were dojis or spinning tops, which shows us a lot of indecision. The SPY also struggled with the $300 level, and hasn't shown the appetite to go test the all time highs as of yet. What will be very important for us as traders this week will be to keep a very open mind about which way this resolves. We do not want to be bullish or bearish with these mixed signals, and we want to be sure to simply follow what price action tells us. Key spots to watch all week will be $300 and all time highs to the upside and the ema8, sma20, and $294 area to the downside. Take things day by day, and don't get overly excited or worried about price action in these ranges. A direction will come eventually and if we are patient in our approach we will be ready for it when it comes. Here are some names that we will be watching this week:
HOV is one of many home builders showing strength recently. Ideally we'd like to see this consolidate a bit and try to pick it up off of a pullback to the $25.50 area for a move back up towards the recent highs, but we would also like this on a break above $27 on volume for the same targets.
ZUMZ gapped up on earnings early last month and has been consolidating since then in a nice TTM Squeeze on the daily. Ideally we'd like to see this pullback slightly and get an entry on a move back up through the 32.25 area for a push up to $34 or higher.
T is in a very nice TTM Squeeze on the daily and in a very large cup and handle pattern. We would like to see this pullback and hold the $38 area and get an entry on a move back up off of that for a push up to the mid $39s.
BKE is in a TTM Squeeze on the daily and reacted very well to a test of its sma20 on Friday. We like this on a break o 21.11 for a push up to the recent highs around $22 and possibly higher.
AWI made all time highs in July and then retraced a bit off of there. It has been consolidating along the sma50 and sma20 and made a nice push up off of them last week. It is also in a nice TTM Squeeze. Ideally we like an entry around $99 for a test of $100 and then possible push up towards the summer all time highs.
MDLA is a relatively recent issue that has been bottoming for a while now. It's in a TTM Squeeze on the daily and looks ready for a move up. We like this over 28.68 for a push up the ema34 around $30.
TREX has been showing a ton of strength since earnings and is consolidating just below all time highs in a TTM Squeeze. Ideally we like this on a small pullback and then push up through $90 for a test of the recent highs and possible push higher.
FAST has a big earnings beat last week and is in a flag pattern since. We like this on a break of last Friday's high of 36.15 for a test of the post earnings high and breakout from there.