Weekly Watch List January 13th

Happy Sunday!

I hope that everyone is having a relaxing and enjoyable weekend as we prepare for a new trading week ahead. It was quite a week for the SPY. We started with a gap down day that pushed up all day and finished with a gap up day that ended up as a bearish engulfing candle; however, the weekly candle is very nice. We are in a place where the market could easily continue grinding higher, but we may see a bit more of this choppy action as it does that. We could also certainly see a more meaningful pullback. What is important for me to watch is do the pullbacks keep getting bought at potential support like the ema8 and the sma20? It is very important for us as traders not to anticipate the pullback and go short the market expecting one. When a deeper pullback happens, we will see technical signals that will tell us something different is happening and can then act accordingly. For now, we continue to focus on shorter term setups and we are keeping risk smaller when we are near all time high resistance. Here are some names that we will be watching this week:

CVET has been consolidating along its sma20 and sma100 for a couple of moths now and looks ready to possibly push higher in a TTM Squeeze on the daily. We like this on a test and hold of the sma20 or on a push up through $14 for a move to $15 or higher with a large gap above

LB is in a long basing pattern and got some interesting call sweep activity last week. It showed some strength Friday in a weak market. We would be interested in a pullback and then move back up through $19 for entry or a move through last week's high of 19.69 for a test of $20 and possible push higher