With all the focus on the FANG stocks, it's worth noting that while Facebook (FB) and Google (GOOGL) ¿ which are held in the Action Alerts PLUS portfolio co-managed by Jim Cramer ¿ and Amazon (AMZN) -- held in the Growth Seeker portfolio -- are still trading beneath their five-day and eight-day exponential moving averages, Netflix (NFLX) is on the verge of a meaningful breakout. A push above $115 on NFLX should be expected to generate significant excitement among momentum-oriented traders.
I haven't paid much attention to the coal sector over the past year, but after several inquiries on Peabody Energy Corp (BTU) I thought I'd take a second look. Before we consider whether a buying opportunity may be at hand in BTU, let's not forget that every bounce in the stock since early March 2011 has ultimately been a selling opportunity.
With the above in mind, a close above $15.75 would amount to a new (albeit very short term) swing high, as well as make the late-October break to new swing lows look like a bear trap. The bottom line is I only want to consider BTU for a long trade above $15.75, because when the higher timeframe trend is taken into consideration, there's simply no logical reason to consider buying the stock on weakness.
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.
