The chatter surrounding a possible correction in the S&P emini futures has grown over the past 3 days. I continue to watch the rather obvious resistance level of 1071.50 for an indication that this rally has further to go (1080 being the next stopping point) and 1056.25 for a sign that the bears are not all dead.
A sustained trade under 1056.25 should not cause the hard-core bulls to lose faith, but it would lead many traders to look for a move in the emini back towards 1026 or 1016. I doubt traders could push the emini through 1026 without a stiff relief rally, but if they do the line in the sand for the bulls is near 991.
AAP has traded terribly since early August. I am watching this stock for further weakness and a break under 38 bucks. Since this stock just fell from 42 to 38, I would not anticipate another fall…wait for the weakness and react then.
LAZ has been churning in a 3 ½ point range for five or six weeks and appears to finally be breaking down. Keep an eye on LAZ and consider taking a short position if the S&P begins to exhibit weakness. A move back towards 32 seems very reasonable.
CPO is stuck in a descending triangle (28.50 is the base) and may be nearing an upside break. I am not likely to anticipate a move higher…I would prefer to see strength above 29.63 and react then.
Back on September 8th, FB subscribers were alerted to YRCW. I suggested treating this as a lotto trade and picking up some shares above 2.30. After an almost 100% move I am watching for YRCW to break out of its current consolidation (symmetrical triangle) and trade higher again.
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Disclosure: No positions were held at the time of publication, though that may change at any time.