Two Stocks For Today
The FOMC
meeting, as expected, did little to move the markets either way. Rather,
it appears as though the catalyst for yesterday’s move higher was simply a
bounce off the 894 level yet again. I was not able to share this with you in
yesterday’s column due to my schedule, but let’s take a look nonetheless for
review.
Naturally, this price action offered the alert trader a decent long entry
once the S&Ps came back through 894.
As did the SOX. In fact, given that that sector continues to be the “hot”
sector, there were quite a few nice trades in the underlying issues.
Today should prove to be a pivotal day based purely on time. If we go back
and calculate a Fib time extension between Nov. 13 and Dec. 2, it indicates the
possibility of a trend reversal today. Will it be a resumption of the uptrend
experienced over the last few weeks, or a reversal of yesterday’s move back
above 900 off the 894 level?Â
Regardless of the direction, it always helps to have a couple of ideas
brewing to put into action if the proper trigger shows up. Below are two stocks
I will be keeping an eye on as potential candidates depending on which way the
S&Ps unfold.
The 30-minute chart of Apache
(
APA |
Quote |
Chart |
News |
PowerRating)
is forming a pattern after the quick spike up Dec. 9. With enough momentum frOm
the overall market, a move up to $59-$60 is not out of the question before
running into resistance.
Well, fundamentals aside with regard to what is surely to be a disappointing
holiday shopping season, the technical picture that is shaping up in
Target
(
TGT |
Quote |
Chart |
News |
PowerRating) is indicating lower prices
are on the horizon. Naturally, the overall market will need to confirm this as
well.
I really like the way this pattern is shaping up. The first thing that caught
my eye was the large downward trend channel going back to Dec. 2. We are
currently trading at the top of that channel after forming a very tight and
orderly “mini channel” within the larger one. A break of that smaller trend
channel may produce some decent downside price action. If the move begins to
stall in the $32.65-32.80 area, do not get too stubborn, and look to book some
profits on half of the position at the very least.
The gold sector got roughed up a little bit yesterday after a nice run in the
last several sessions. Most have pulled back into what I would consider decent
long entry areas on the intraday charts. If the overall market begins to
deteriorate, especially a decisive move below 894, these stocks should heat
up. Look for the XAU to make a move above
71.
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| 918-20 | 1059.50 |
| 910 | 1052.25 |
| 902-04 | **1045** |
| 894 | 1037.25 |
| 889 | 1029.50 |
| *883-84* | 1022.25 |
| 879 | *1012-14* |
| Â | 999.50 |
* indicates a level that is more significant
As always, feel free to send me your comments and
questions.