Facebook (FB) hasn't traded between its 150-day and 200-day simple moving averages (SMA) often over the past few years, but it's there right now. Any rebound in the broader average will likely result in more aggressive, momentum-oriented participants moving back to stocks such as FB. I still expect this to be a go-to name once markets stabilize and begin to bounce.
Several readers requested an updated view on International Business Machines (IBM). Seeing that it broke to a new multi-year low Friday, I figured I'd take another look. The last time IBM closed near $130 was in mid-September 2010. While anyone who has bought the stock over the past five years probably isn't too pleased, it's worth noting the stock is trading on top of fairly strong support (from that 2010 time period). My two thoughts are to either avoid the stock until it closes back above $131.60 (swing low from mid-November 2015), using whatever the current swing low turns out to be as a stop-loss point. Or, if you'd prefer to bid into continued weakness, look for price to stabilize closer to $120.50 to $122 (support dating back to 2010).
With stocks from the electric utilities component of the Utilities sector making up a large chunk of the stocks currently trading above their 50-day SMAs, I want to keep an eye on Entergy (ETR). A close above $70 to $70.75 would place price above the 200-day SMA, above the October 2015 swing high, and very possibly set the stage for a trade toward $77. Utility stocks aren't usually fast and exciting movers. Nonetheless, this one might be worth watching.
Any trading or volume profile related questions can be posted in the comments section below, emailed to me at parkcityyeti@gmail.com or posted to my twitter feed @ByrneRWS
