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There isn't a lot happening so far this week as the market appears to be in a holding pattern, waiting to see if the Federal Reserves drops any hints regarding whether it will cut interest rates in July. There are several members of the Fed committee speaking today and throughout the week, and they often take these opportunities to telegraph potential policy decisions. In the meantime, there are a few charts worth briefly discussing...
AMX has followed through on it's breakout and looks like it could run. Anyone who doesn't own it could still buy it on a mini pullback.
We were hoping for some follow through on LGO and it is happening today. It could still be bought right in this area.
BTO seems to be trying to break out of it's consolidation area. It could be bought here and the stop could either be the original $3.57 or underneath Friday's reversal in the $3.75 area. The trade-off is that the lower stop has less of chance of being hit but the higher stop means there is less money at risk if the stop does get hit.
We had discussed IVN last week when I mentioned a potential $6 price target and that I would be looking for a pull-back for an entry opportunity. That now seems to be occurring and I think buying on a reversal in the $4 area would be a good area to buy.
JWEL is really moving now and if I owned it I would consider raising the stop to the next logical level noted on the chart.
DOL continues to advance and is making new highs again. This is a counter cyclical stock and the way it is moving currently, I would be tempted to just sit in it through the minor dips. As long as we keep the last swing low as our stop, it is a money making trade.
MAXR was on our list a few weeks ago when it made a strong reversal out of a downtrend. Since then it has powered higher and is now up 31% from the reversal day. It is now overbought and will have had two down days in a row after today. It could still move up again tomorrow but this has been a great trade and there would be nothing wrong with taking profits right here.
KNT is another one that I would consider taking profits on today. It looks like a topping candle is forming today and it is now on its second day outside of the bolinger band (a measure of how extended a stock is relative to its recent trading range).
I am showing PTG because today it finally broke out of its bull flag pattern. Unfortunately, so far it hasn't been able to hang onto its gains. I am not sure whether this is profit taking but the volume traded has been really large so far today. I would definitely stick to the $1.40 stop area.
CIA is the first stock where a buy signal was generated and we were stopped out for a small loss (unless you took profits in $3 area). This could still recover but this is classic breakdown so we should only be watching it from the sidelines. Sitting in trades like this hoping for a recovery is the biggest trading mistake there is and is a recipe for turning a small loss into a large loss.
I have basically discussed all of the notable charts in this post. Everything is else is basically in a holding pattern for now.
Happy Trading!
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