Stocks to Watch if the Bulls Win Out

 | Sep 10, 2013 | 11:36 AM EDT
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(This column originally appeared on Real Money Pro.)

We now have our gap fill on the SPDR S&P 500 (SPY). It almost felt too obvious. But we got it, so now I would expect some resistance, as the SPY is going to leave a gap in the previous gap. This is still a difficult trend to find on the short side. Bears need to step up here before bulls close equities above the recent gap.

SPY -- Daily

Assuming the SPY is able to close above that level, some bigger, more mainstream names look as if they could be in for another leg higher.

Priceline (PCLN) -- Daily

First up is Priceline (PCLN), which has spent most of its post-earnings time consolidating the initial pop. Now we're seeing a nice "W" formation, as well as a breakout above resistance. Priceline is certainly setting up for a test of $1,000 on a close at $975 or more. I am already long this name from before the earnings release, but I am considering a very-short­-term call spread at the close Tuesday, targeting a near-term move toward $1,000.

Chipotle Mexican Grill (CMG) -- Daily

Expanding outside of tech, there may be opportunities in the biotech and food space, as well, via Celgene (CELG) and Chipotle Mexican Grill (CMG). Chipotle has a very similar setup to that of Priceline. The "W" isn't quite as clear, but it is there, along with the strong Commodity Channel Index (CCI) and bullish crossover on the moving-average convergence-divergence (MACD) line. Chipotle really needs to close above $415, though, to make it a buy. Otherwise, it will remain stuck in a channel.

Celgene (CELG) -- Daily

There is no doubt that biotech is hot, and Celgene is one of the strongest names in the group. If the stock gets above $150 on the close today, we'll see a "W" formation on this chart, as well -- although the Celgene "W" is much, much larger than that of Chipotle. This formation would target $167.50-to-$170 area on the upside. So, if Celgene get above $150 today, I'll be a buyer of October $145 in front of the close. Otherwise, I would just continue to watch it closely. There is no way I would be looking to short the stock here, as there is simply no support for it.

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we like this chart here, it appears ready to move higher. BOUGHT BZUN OCT 35 CALL AT 3.40
Large-cap, high-quality McKesson (MCK) is too cheap now, at $147.51 or so. The stock hit $243.60 more than 2.5...



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