Happy New Year's Eve!
It's New Year's Eve which brings all sorts of excitement - just not not to the trading world. Today is likely to be a quiet, low volume day, and hopefully we see things begin to get back to normal Thursday and into next week. We saw some continued pullback in the market yesterday, but there is still nothing telling us that there is any change in trend. Looking at the SPY, we tested the ema8 on the daily and broke below it a few times, but we closed slightly above it. Until the ema8 breaks and we see a test and possible break of the sma20, the strong uptrend remains intact. With a light volume day expected near all time highs with some signs of potential weakness, I am likely to focus on very short term trades today. My scans for today didn't turn up a lot of quantity, but I did find a few good quality setups. Here are the names that I will be watching today:
XLRN had a perfect pullback to the sma20 on the daily and is pushing up off of it now. I like this over $53 for a test of recent highs around $54 and potential push higher
TXRH is in a bit of a flag pattern after a big gap up in late October and is starting a TTM Squeeze. I like this over 56.75 for a test of $57 and possible break up out of the flag to the $60 area
HIBB had a nice gap up on earnings in November and retraced and filled the gap and now looks ready to break higher in a TTM Squeeze. I like this over 27.84 for a test of $28 and then push to $29 or higher
BURL is in a beautiful flag pattern and has TTM Squeeze on the daily that is starting to look bullish. I like this over $230 for a break up to the $235 area
DLTR is in a nice reversal pattern with a recent 3/8/20 cross. I like this over $94 for a move up to recent highs around $95 or higher
MDU pulled back off of recent highs and held its sma20 perfectly. I like this over yesterday's high of 29.54 for a test of $30 and possible break higher.