An inside day today after last weeks impressive bounce off the 200 Day Moving Average. SPY is coming into big resistance at $135, but for now, buying dips is what is working in this tape. Strong stocks continue to act well. Today we saw 52 Week highs in stocks like AMZN, NFLX, LULU, WYNN and CMG.
Last Monday, June 27, we targeted SINA for a long above $93.40 once it broke above the lower pivot area. It is now trading above key moving averages but could see some resistance as it trades into a downtrend line. This may need a little more basing before breaking above this downtrend line, but next entry will be above $116.20. Keep this on the radar.
Today we saw more continuation from Fridays targeted traded once it triggered out of the bull flag. AAPL is running into a bigger resistance zone of $350-$352. AAPL had a strong closing bar above this multi-month channel, higher prices should be seen for this stock. Technically speaking, this is extended on the longside. I will look to buy a pull-in for a move higher.
The Cloud Sector is showing Relative Strength in the Market- Most of the stocks in the sector, held up well during the June correction in the Market and now stocks like VMW and CRM are close to 52- Week Highs. CRM has given some calculated trades over the past 2 weeks and now setting up for a momentum trade through highs. Next Buy is $154.
Another stock in the Cloud Sector, RVBD, broke above a downtrend line last week and is consolidating above that break. Keep on the radar for continuation above this new 3-day range.
The Agriculture Sector has been out-of-play but started to gain footing to the upside after MON announced earnings last Wednesday. A few weeks ago, POT was looking very bearish, but in the end it held support of $50. Today POT broke above the 3-day high of $57.14 and is trading above the multi-month downtrend line. I would look for continuation above today’s high of $58. First resistance is $59.50-$60.
Commodities played catch-up to the Market today. SLV held the lower end of its ranged and gapped up this morning with a close on highs. I would look for a break above this lower pivot area. A move above $35 will trigger SLV out of the pattern. Minor Resistance: $36 Major Resitance: $38.
ACTIONABLE TRADE SET-UP: LO had a powerful move a few weeks ago, and since then has been holding higher and absorbing the move. Trigger Buy: $112. First Target: $113.70
52 Week High: $116.90
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