The current uptrend is still under heavy pressure. The major indices are showing weakness and are having some troubles regaining key areas to confirm further strength.
So for me this means trading more cautious and not being aggresive in any new trades.
If I take new positions I also place some tighter stops to protect my account. And if a short move happens to give me a nice profit I’m prone to taking it off the table sooner than I normally would do.
Keep in mind that cash is a position. And quite often, it’s the best place to be during times of choppy, sideways, volatile, trendless action on the major indexes and among leading growth stocks.
Resist the urge to trade, especially if you are still relative new in trading.
Note: Earnings season is still underway, so make sure you know when a company is due to report before initiating a new position. And also know those dates for any positions you already have to protect your account against surprises.
With a lot of people being at home more and improving their houses they also look into their garden machinery. DE is one of the top players.
It reports earnings on Friday the 21st. So keep that in mind if you decide to enter it beforehand.
Watch DE for big volume move through $392.42. Place a stop loss order at the 50-DMA.
Smith & Wesson is looking to get ready to break out higher after a Stage 3 consolidation. It traded around it’s 50-DMA for about 8 months. The longer term moving averages converged over the months. The last two weeks the shorter term 20 and 10-EMA are slowly getting back up showing the short term strength.
Watch SWBI for a break on big volume through $20.26. With a stop at the 50-DMA.
YETI bounced fromt the 50-DMA on good volume after reporting strong earnings.
Watch YETI for a move through 90.65 on big volume. Place a stop loss at the 50-DMA.
Watch HAYW for a breakout above $25.28, or $24.79 as a more aggresive entry. Protective stop for the short term at the 10-EMA.
Next to UPS showing a lot of strength Fed-Ex is looking ready for a nice move as well.
Watch FDX for a big volume break through $317 out a of big cup and handle pattern.
UPS is already up about 15% since the earnigs gap on 27 April. It has formed a short flag that will most likely propel it’s uptrend higher.
Watch UPS for a move through $219.59 on good volume for a continuation. Protective stop at the 10-EMA.
ELAN report strong earnings on 6 May and formed a short flag last week. Closing the week on Friday very strong and near top resistance. If it manages to break through it the next important price is it’s all-time high at. $37.61
Watch ELAN for a break through $34.81 on strong volume. Stop loss at the 10-EMA once bought.
Watch FNKO for a big volume break through $25.52 out of the bull flag it has formed. Stop loss at the 50-DMA.
Watch OBNK for a break through $44.97 as a strong bounce of the 50-DMA. Placing stop loss at the 50-DMA.
Watch STXB for a big volume move through $23.50 as a bounce from the 50-DMA after a short consolidation. Protective stop loss around $22.08.
Good luck this week again!
And as always feel free to let me know what you are watching?