The Boys Are Back
This week is expected to, as usual, be the lightest trading week of the year.
Few traders are expecting to see volume return until after Labor Day. What does
this mean for us? It means a choppy market with limited follow through.Â
Today’s Watchlist:Â Â
(
AZA |
Quote |
Chart |
News |
PowerRating),
(
GLW |
Quote |
Chart |
News |
PowerRating)
The green line on the charts is the 200-day MA and the blue line is the
50-day MA.
Alza
(
AZA |
Quote |
Chart |
News |
PowerRating) broke out to a new high on Monday after forming a high-level cup
on the bounce off the 50-day MA. This group in the medical/biotech sector
continues to show strength, such as DGX mentioned earlier today. Watch for Alza
to close at a new high on strong volume. On Tuesday, watch for a potential long
opportunity on a continuation of this move higher. Depending on Monday’s range,
you may consider placing an initial stop below Monday’s low. If you have another
stop placement system, of course, stick with it. It’s always better to have a
clear mind and move on to the next trade.
Corning
(
GLW |
Quote |
Chart |
News |
PowerRating) continues to appear on the Watchlist, not
because it is simply moving higher, but because it continues to trace out new
entry patterns for us. This time around, Corning is breaking out of a
consolidation pattern. Because the volume today is still only average, watch for
it to close in the top 15% of its range. As with all of the breakouts that I
have mentioned today, we’ll watch for a continuation of the current move, which
will be signaled by more new highs printing on the tape on Tuesday.
You’re right, it’s not a tech stock, but it sure acts like one. It’s Krispy
Kreme
(
KREM |
Quote |
Chart |
News |
PowerRating). Why am I adding it to the Watchlist? Because it’s a good
setup.
KREM has not taken out its all-time high on strong fundamental news. The volume
has been very strong in the last few days as well. On that note, we will
watch for a continuation of this strong move on Tuesday to take it to new highs
again. On each move, we want to see volume backing the trading. Set your
alerts above Monday’s intraday high, following the close.
Until later,Â