Both Alcoa (AA) and Freeport-McMoRan (FCX) continue to look fine, but chasing them on any timeframe greater than a few hours probably isn't the wisest decision one can make. Give the shorter timeframe moving averages a chance to catch up with these stocks before attempting to reload.
Goldcorp (GG) reported earnings after the bell Wednesday, and traders bid the stock up over $18 during after-hours trading. The area around $18 acted as strong support between late October 2014 and late May 2015. So it's logical to assume a sustained trade above that level could trigger a new up-leg in the stock. A strong close on good volume would have me eyeing levels between $20 and $20.50.
Wednesday's 16% drop in shares of Twitter (TWTR) didn't occur on record-breaking volume, but the traffic was high nonetheless. Given my enjoyment of the Twitter social-media platform, I'll probably continue to keep an eye on the stock. But I can't see trading it anytime soon.
The bullish trend on the Energy Select Sector SPDR (XLE) is truly impressive. But the closer the ETF gets to $69.50, the more I start to look for shorts. The bottom line is that, while I respect the strength the ETF is showing above its 50-day and 200-day simple moving average, I can't ignore the supply likely lurking within that two-handle resistance zone dating back to October and November 2015.
As an update, prospective short sellers in the financial sector may want to revisit our chart on the Financial Select Sector SPDR (XLF) from the April 22 Trader's Notebook. The ETF is getting very close to a level I'd expect to begin stalking a short.
Any trading or volume profile related questions can be posted in the comments section below, emailed to me at firstname.lastname@example.org or posted to my twitter feed @ByrneRWS.