American Express, Ticker: $AXP
American Express, $AXP, had a horrendous December falling from an all-time high at 114 to a low at 89, a 20% drop, in 3 weeks. It has been moving higher since with a couple of steps so far. Friday saw the price push over short term resistance and retest the October low. The RSI is rising toward the bullish zone with the MACD moving up. Look for continuation to participate…..
BorgWarner, Ticker: $BWA
BorgWarner, $BWA, has been moving lower since topping in January last year. The move off of the December low has put price back at the November highs, a third touch there. It has a RSI that is rising and bullish, near overbought, with the MACD moving up and positive. Look for a push over resistance to participate…..
Electronic Arts, Ticker: $EA
Electronic Arts, $EA, started higher off of its 200 day SMA in December 2016. It topped in July last year and started moving lower. At the Christmas Eve low it had retraced that entire move, and lost 50% of its value. Since then it has been moving back higher and closed last week breaking a bull flag to the upside. The RSI is rising and bullish with the MACD positive and moving higher. Look for continuation to participate…..
Intercontinental Exchange, Ticker: $ICE
Intercontinental Exchange, $ICE, had trended higher until it broke down in December. It bounced back quickly to its 20 day SMA and then dropped again, this time to a higher low. A second bounce has it back at the early January high coming into the week. The RSI is rising through the mid line with the MACD crossed up and moving higher. Look for a push over resistance to participate…..
Louisiana-Pacific, Ticker: $LPX
Louisiana-Pacific, $LPX, fell fast from a top in September. It found support in October and bounced but quickly ran out of steam. A second trip down made lower low and it bounced again. It paused at a retest of the first bounce and is now moving higher again. The RSI is rising and bullish with the MACD positive and moving up. Look for a push over resistance to participate…..
After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with January Options Expiration behind and a long weekend ahead sees equity markets continuing to recover and looking strong.
Elsewhere look for Gold to pause in its uptrend while Crude Oil resumes the move higher. The US Dollar Index is showing short term strength while US Treasuries are biased to continue lower. The Shanghai Composite is also exhibiting short term strength and may be reversing higher while Emerging Markets continue to move up.
Volatility is back down to the lows since equities started to drop in October making the path higher the easier one for equities. The equity index ETF’s SPY, IWM and QQQ, are all responding well in both the short and intermediate term charts. But they all remain short of confirming reversals with a higher high and below their 200 day SMA’s. More work to be done. Use this information as you prepare for the coming week and trad’em well.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.