The market finally broke out of the 284 to 294 range that it had been bouncing around in for all of August, and we saw 3 of the 4 major indices break up over their sma50 with the IWM being the laggard that didn't participate. Overall it is a positive sign for the market, but the IWM does remain a bit concerning here. It is also worth noting that all of the indices have fresh new gaps below now that may want to fill and back test previous resistance as potential support. We also still remain in an environment where the market can turn on a dime on any trade news, and we have a FOMC meeting coming up on September 17th and 18th. Overall, we are far from out of the woods, and it remains a time to be patient and focused on shorter time frame trades. Here are some names that we will be watching this week:
SNAP had a nice gap up on earnings in late July and retraced to the $15 level where it started turning back up. On Friday it moved back over its sma20 and is in a nice TTM Squeeze. We like this on a break over 16.75 for a push back up towards $18 or on a pullback and hold of its sma20 and a move back up. It is also worth noting that there were a lot of aggressive call sweeps on SNAP on Friday.
EVTC is another recent earnings winner that retraced some and is now moving back over its sma20 with a nice TTM Squeeze on the daily. We like this over $36 for a push up towards 37.50 or higher
K is another similar setup here with an earnings gap up in early August, a retrace and a nice reclaim of its sma20 with a TTM Squeeze on the daily. Ideally we would like to see this pull back a bit and then move up through the 63.50 to 63.75 area for an entry to see if it can push back up towards the earnings high near $66
UHS is in a great TTM Squeeze on the daily with nice volume coming back in as it is setting up for a clean 3/8/20 cross up. We like this over 148.60 for a test of $150 and possible move up to $153 or higher
NBIX was on our watch list last week and struggled a bit to get going but it continues to hold its sma20 in a nice bull flag. The TTM also went from dark blue to light blue and is in a squeeze which is a good sign. We like this on a pullback to the sma20 and push back up through the $98 level for a test of $100 and possible break out.
FEYE is in a potential reversal pattern that so far has stalled at the ema34. It also saw a lot of call sweeps on Friday and has a TTM Squeeze on the daily. We like this on a pull back and then move back up through the 13.50 level for a push up into the $14s
BURL is a very recent earnings winner that probed higher after earnings and then pulled back a bit. We like this on a push over its earnings day high of 206.05 to push up towards the $210 level