The indices have been feast or famine lately. We've had alternating days of good and bad with stocks moving in more correlated fashion than they did during the recent trading-range action. The big jump in Apple (AAPL) has helped to improve the mood quite a bit, but there has been growth in bearish sentiment. (Apple is part of TheStreet's Action Alerts PLUS portfolio.)
The move today strengthens the underlying support at S&P 2119, but the 50-day simple moving average at 2167, and the gap above that, is the big upside resistance. It is likely that we trade in this range as we head into the Fed news on Wednesday. The reaction to that announcement is going to tell us quite a bit about this market. Either it's business as usual or we are in for some difficulties.
I'm trying to put some cash to work and am not having a lot of success. One of my longer-term favorites, BioTelemetry (BEAT) is perking up and challenging its 50-day simple moving average. I'm looking to add to that position as it develops. I continue to try Aratana Therapeutics (PETX) , but it is at the lower end of its range and needs to exhibit some stronger accumulation. Energy Recovery (ERII) received a target of $20 from Jefferies earlier this week and is working on a breakout. Gigamon (GIMO) is doing a nice job of building on its breakout.
The way this bounce is acting, I think we have further to go, but I may have to use an index play to get more money to work. Lots of stocks are acting well, but the entry points aren't easy.
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I have had some real success playing volatile names ahead of news events from the short-side, but this is not something I would recommend for newer traders.
Simply put, this one checks all my technical boxes, including price.
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