The market gave us a little bit of everything last week. New all-time highs for most of the major indices, a pullback, a bounce, and yet another pullback and a pretty bearish candle to finish the week. I am seeing a lot of talk of gloom and doom as well as predictions that the market will just shake this off and rocket higher on the news and social media, and its important that we don’t let predictions influence our trading, especially when it comes to our emotions. Our job (especially in this news driven market) is to take it day by day, read the charts, and follow the price action. We should be open to all possibilities and ready to trade what the market gives. Having said all that, we are not seeing a lot of great setups in our scans this weekend, but we were able to find some charts that could set up at some point this week depending on what the market wants to do. Here are some names that we will be watching:
LYFT has been getting some decent but slow recovery after a disappointing IPO and a low in early May. They have earnings coming up on August 7th, and this could be setting up for a run into that. With the market down last week, LYFT gave a decent move up and could make a bigger move if the market cooperates. We like this either on a pullback and hold of the $66 level or on a break over Friday’s high of 68.33
AEO is in a decent reversal pattern and is giving us a little short term flag as it tries to work its way over the sma50. We like this over the 18.40 to 18.50 area for a push up towards $20
DE is a name that has a nice TTM Squeeze on the daily and earnings coming up on August 16th. We like this on a pullback and hold of the sma20 around 164.60 or on a break up through the 166.50 area for a move towards $170
GH is in a very nice, long TTM Squeeze on the daily, and has been consolidating nicely along its sma20. Ideally, I’d like to get an entry on a bounce off the sma20, which is currently around the $88 level.
KPTI is a stock that recently got a surprise FDA approval for a product that gave a large pop in the stock price followed by a pullback to the .618 Fib level. It has been trying to work its way back over its sma200 on the daily, and if it can do that and take out resistance around 8.40 we believe this could test the $9 level and possibly even push higher.
SAIL has been in a nice recovery with a large gap above and it looked ready to maybe move higher on Friday, but it couldn’t fight the market pullback. It has a TTM Squeeze on the daily, and we would like to see that go back to a light blue momentum bar for an entry. With this name we like entry either on a pullback towards the sma20 with a reversal or on a break of the Friday high of 21.14 for a move higher into the gap.